Producers Panic as Ethanol Mandate Loses Support

[ibetyamissedme]

I just played with the numbers a little. If roughly 65% of the original bushel of corn is turned to ddg, and then sold, and 2.8 gallons of ethanol can be made from a bushel of corn---------Why is it subsidized? Seems like it should be selling cheaper than it is. The cost of production must be astronomical.

Ask the oil guys they get the subsidy check for the ethanol.

Why should ANYBODY be getting a subsidy check for ethanol?

Ask the oil guys they are the one getting the check?

 

[TennesseeTuxedo]

They said call inbredredneck 'cause he knows everything.

 

[ibetyamissedme]

They said call inbredredneck 'cause he knows everything.

So you asked the oil guys why they take the check? what did they say?

 

[Bigfoot]

http://m.youtube.com/watch?v=kL2PG6YavsI

Nice commentary here on getting older.

 

[TennesseeTuxedo]

http://m.youtube.com/watch?v=kL2PG6YavsI

Nice commentary here on getting older.

Wrong thread I think Bigfoot.

 

[TennesseeTuxedo]

They said call inbredredneck 'cause he knows everything.

So you asked the oil guys why they take the check? what did they say?

I already told you what they said.

 

[TexasBred]

Tb told me how much ddg comes from a bushel of corn, and it made me feel a little better about buying the stuff. Anybody know what the conversion rate on a bushel of corn to a gallon of ethanol is? It might change my perspective on ethanol as well.

Local plant is 2.82 gallons per bushel.

Wow that really sucks.
You took 55 pounds of feedstock and made 18 pounds of energy roughly 300,000 btus.
Take the same 55 pounds of crude is 7.8 gallons expanded through technology to 8.9 gallons producing over 900,000 btus.
Crude is the winner winner 55 pounds went in and 55 pounds came out with a 15% volume increase as well octane enhanced 40 over the feedstock.

But CB that 55 lbs. of crude cost about $17.08 if my math is right and 56 lbs. of corn is at $4.00 right now.

 

[Bigfoot]

http://m.youtube.com/watch?v=kL2PG6YavsI

Nice commentary here on getting older.

Wrong thread I think Bigfoot.

Dang. I must be getting old.

 

[ibetyamissedme]

They said call inbredredneck 'cause he knows everything.

So you asked the oil guys why they take the check? what did they say?

I already told you what they said.

Hell they goofy, I don't know why big oil keeps taking taxpayer money with the ethanol subsidy. I will be honest I'm a bit jealous of big oil, now my feedstocks cost more and big oil gets the check. Back in the day they subsidized the corn farmer and I bought cheap corn. Damn you big oil help a guy out.

 

[TennesseeTuxedo]

http://m.youtube.com/watch?v=kL2PG6YavsI

Nice commentary here on getting older.

Wrong thread I think Bigfoot.

Dang. I must be getting old.

LOL!

 

[TexasBred]

http://m.youtube.com/watch?v=kL2PG6YavsI

Nice commentary here on getting older.

Wrong thread I think Bigfoot.

Dang. I must be getting old.

:lol2: :lol2: Just smile...it will happen more and more often. :lol2:

 

[SRBeef]

There is a lot more that comes out of that ethanol plant than just ethanol. It has value and kcal also.

 

[greybeard]

Yes, there is. My mother would call it manure but my father would call it bs.
Dependency, mendacity, and sense of entitlement all come from those plants.

 

[Jake]

Fact of the matter is that the ethanol mandate means nothing as the ethanol industry has been producing well above the mandate for a while even through last years extremely short corn carryout. We are exporting a lot of ethanol to the middle east and South America as ethanol is the cheapest source of octane in the world. DDG is worth a lot of money shipped to China in boxes as well as a feedstuff here as it is not a true substitute for corn. Way different feed stuffs. Ethanol plants are no longer subsidized and the blenders credit that was in place before expired almost two years ago.

 

[Caustic Burno]

Fact of the matter is that the ethanol mandate means nothing as the ethanol industry has been producing well above the mandate for a while even through last years extremely short corn carryout. We are exporting a lot of ethanol to the middle east and South America as ethanol is the cheapest source of octane in the world. DDG is worth a lot of money shipped to China in boxes as well as a feedstuff here as it is not a true substitute for corn. Way different feed stuffs. Ethanol plants are no longer subsidized and the blenders credit that was in place before expired almost two years ago.

Yes Jake it is subsidized when the government mandates a company to buy your product and put it theirs to sell it is subsidized.
Just like the MTBE before it, they don't exist any longer as soon as the mandate went away.
This is about taxes and lobbies nothing to do with energy as our energy policy is an absolute joke.
As in everything else follow the dollar to DC.
The three most ranted and regulated by our politicians the most heavily taxed, alcohol, tobacco,and oil.
They got sickness taxed and subsidized for some this year. They just haven't figured out a way to tax sex yet they are working on it rest assured.

 

[TexasBred]

Fact of the matter is that the ethanol mandate means nothing as the ethanol industry has been producing well above the mandate for a while even through last years extremely short corn carryout. We are exporting a lot of ethanol to the middle east and South America as ethanol is the cheapest source of octane in the world. DDG is worth a lot of money shipped to China in boxes as well as a feedstuff here as it is not a true substitute for corn. Way different feed stuffs. Ethanol plants are no longer subsidized and the blenders credit that was in place before expired almost two years ago.

In 2011, Congress did not extend these and other "temporary" tax policies. However, the ethanol mandate is still in place. The Energy Policy Act of 2005 contained the first-ever requirement that renewable fuels be mixed into the gasoline supply. The 2007 Energy Independence and Security Act increased the mandate substantially to 36 billion gallons by 2022. Allowing the tax credit and tariff to expire is good for taxpayers and consumers, but to truly drive innovation in the transportation fuel sector, Congress should repeal the renewable-fuel standard and all other subsidies for transportation fuels.

 

[Jake]

The production mandate is only a subsidy if they are truly being forced to produce the mandated amount. Ethanol is currently producing 2 billion more barrels than mandated due to export demand.

I by no means support the mandate but if it was done away with it would not change corn use for ethanol today.

 

[TexasBred]

The production mandate is only a subsidy if they are truly being forced to produce the mandated amount. Ethanol is currently producing 2 billion more barrels than mandated due to export demand.

I by no means support the mandate but if it was done away with it would not change corn use for ethanol today.

There really is no demand....only forced consumption.

 

[Jake]

The production mandate is only a subsidy if they are truly being forced to produce the mandated amount. Ethanol is currently producing 2 billion more barrels than mandated due to export demand.

I by no means support the mandate but if it was done away with it would not change corn use for ethanol today.

There really is no demand....only forced consumption.

That is true, but the only thing I was seeing here was talking about a production mandate that doesn't exist. The e10 deal is forced consumption but that is never the program people complain about or attack.

I'm all for pulling it all back to a pure market and get rid of the government influence. Just have to get the lobby $$$$ out of it

 

[Brute 23]

Like others have said, Ethanol has been a political tool to buy votes from day one. CNG is the future... Drill Baby Drill! :tiphat: