Food for Fuel

[sdkubota]

If the federal government completely removed all susidies on ethanol production tomorrow...all ethanol plants would be closed the following day. It isn't sustainable, effective, or makes any sense...perfect for a government program.

 

[smstonypoint]

and where does that land come from?

if you have 5000ac to grow on, and most of it is ethanol corn.. or animal feed corn.. where you growing the human feed corn?
no free lunch.

I'm certainly not in favor of ethanol subsidies or mandates, but most of the land I see being diverted to corn and other agronomic field crops is from hayland and cropland coming out of CRP. This is in response to the relatively high price of corn, soybeans, etc. in recent years.

Here's a breakdown of (field) corn supply and utilization for the 2010/11 marketing year in million bushels(http://www.usda.gov/oce/commodity/wasde/latest.pdf) and http://www.ers.usda.gov/media/815354/fds12f.pdf)

Supply:14,182
Utilization:
feed & residual -- 4,793
food, seed, industrial (FSI) -- 6,428*
exports -- 1,834
Ending Stocks -- 1,128

* The FSI uses are
HFCS -- 521
glucose and dextrose -- 272
starch -- 258
alcohol for fuel --5,021**
alcohol for beverages -- 135
cereals -- 197
seed -- 23

** This use has byproducts for animal and human use: distillers' grains, corn gluten feed and meal, and corn oil.

BTW, the acreage devoted to sweet corn is miniscule relative to field corn, 269K http://usda01.library.cornell.edu/usda/current/VegeSumm/VegeSumm-01-26-2012.pdf versus 99.6 million in 2010.

Steve

 

[murphy1244]

If the federal government completely removed all susidies on ethanol production tomorrow...all ethanol plants would be closed the following day. It isn't sustainable, effective, or makes any sense...perfect for a government program.

The farmers will never allow it.

 

[Soundguy]

just shows how badly we plan crops in this nation.... we could be doing soooo much more..

I'm certainly not in favor of ethanol subsidies or mandates, but most of the land I see being diverted to corn and other agronomic field crops is from hayland and cropland coming out of CRP. This is in response to the relatively high price of corn, soybeans, etc. in recent years.

Here's a breakdown of (field) corn supply and utilization for the 2010/11 marketing year in million bushels(http://www.usda.gov/oce/commodity/wasde/latest.pdf) and http://www.ers.usda.gov/media/815354/fds12f.pdf)

Supply:14,182
Utilization:
feed & residual -- 4,793
food, seed, industrial (FSI) -- 6,428*
exports -- 1,834
Ending Stocks -- 1,128

* The FSI uses are
HFCS -- 521
glucose and dextrose -- 272
starch -- 258
alcohol for fuel --5,021**
alcohol for beverages -- 135
cereals -- 197

** This use has byproducts for animal and human use: distillers' grains, corn gluten feed and meal, and corn oil.

BTW, the acreage devoted to sweet corn is miniscule relative to field corn, 269K http://usda01.library.cornell.edu/usda/current/VegeSumm/VegeSumm-01-26-2012.pdf versus 99.6 million in 2010.

Steve

 

[smstonypoint]

* The FSI uses are
HFCS -- 521
glucose and dextrose -- 272
starch -- 258
alcohol for fuel --5,021
alcohol for beverages -- 135
cereals -- 197

OOPS

I left out seed use of 23 million bushels.

Steve

 

[buickanddeere]

The farmers will never allow it.

Farm vote is such a small share of the total voting public that politicians don't care.

 

[Obed]

Farm vote is such a small share of the total voting public that politicians don't care.

It's the farm lobby, not the farm vote that is the influencing factor. Also, the perception that bio-fuels are environmentally friendly is the other factor. So both Republican and Democratic politicians are happy to keep the ethanol boondoggle going strong.

A geologist I met who is a TN state employee told me it takes 9 units of energy create 10 units of ethanol energy. Ethanol doesn't make economic sense and everyone knows it. Those on the left don't care because anything "green" is worth it, no matter the cost. Those on the right in power have their hands in the big industrial farmer's pockets.

You'll have to elect me Dictator before this folly will be fixed.

Obed

 

[Soundguy]

. Ethanol doesn't make economic sense and everyone knows it.

deffinately not the way we are doing it anyway.

it can be done, green and positive ont he exchange.. just not the way we do it..

 

[Obed]

deffinately not the way we are doing it anyway.

it can be done, green and positive ont he exchange.. just not the way we do it..

The only proof that ethanol is economically feasible would be if it happens without government intervention (mandates, subsidies, etc.). If something can make money, someone will do it without any action by the government.
Obed