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Ethanol.........so many things wrong with this article....
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Douglas
Posted 12/2/2015 08:01 (#4933206 - in reply to #4932842)
Subject: RE: A dozen clean burning facts on ethanol...........


Central North Carolina

1. Nearly one-third of every bushel of corn used in ethanol production is returned to the food chain in the form of distiller’s grains, a competitively-priced, nutritious animal feed 

2. • In 2014, the ethanol industry created and supported nearly 400,000 jobs. Moving to E15 would create an additional 136,000 jobs

By eliminating jobs in oil refining, transportation, etc. 

new industries create new jobs, gasoline consumption steady to up

New jobs created by government fiat and not based on economics will forever depend on government action and continued regulation. That is little consolation to folks losing their jobs elsewhere.

3. A recent Louisiana State University study found ethanol reduces gas prices 78¢ a gallon — a consumer savings of more than $100 billion annually. 

By recent you mean 2012 study based on 2010 pricing which is quite out of date. Oil prices are way down. I don’t think many farmers would base their 2016 planting plans on 2010 pricing data.

numbers change on the feed stocks, but the economic impact on gas prices, stays the same. Ethanol and corn prices are way down.

Lately yes prices down. But were high for many years. See your answer to 4.
If the economics favor ethanol you don't need a mandate do you?

4. By creating a steady market for corn and other grains, ethanol helps to reduce federal farm program costs. 

You mean it raised gain prices, yep we figured that one out.

Grain prices raised above the price targets that trigger government payments, . Saving tax payers millions. 

I have another idea on how to save those million, like eliminating unfair subsidies. Ethanol is just one type of subsidy substituted for another 

5. • In 2014, the ethanol industry contributed nearly $53 billion to the nation’s GDP and added nearly $27 billion to household income. 

And that higher income was paid by someone who had higher costs, like the livestock industry and consumers.

Farm household income has an economic multiplier of 7.3. Increasing GDP is how you grow your economy and that is a good thing. Livestock income set new records for 2014.


Livestock income was pretty poor for a long time after the government ethanol market manipulation, and leading up to the last few years. And recently the higher prices were due to prior year’s droughts and low livestock prices brought on from higher feed costs and the heard liquidations that resulted.

And thanks for those cheap nitrogen cost the last several years, our pastures really appreciate it as does the Mississippi river.


6, In 2014, the production and domestic use of more than 13 billion gallons of ethanol in the U.S. reduced greenhouse gas emissions by 38 million metric tons, the equivalent of removing roughly 8 million automobiles from the road. 

So why don't we use the better alternatives to corn, like sugar. Oh now another program to protect. Wouldn't want to hurt the corn syrup market now would we. Or inported ethanol from South American. Somehow everything comes back to corn, corn, corn, Gods gift to midwest politicians. 

7, • A 2013 World Bank study outlines how crude oil prices are responsible for at least 50 percent of the increase in food prices since 2004 

Again old data when oil prices were high. They are not anymore.

Corn prices have dropped 50 percent in the last year. Labor, packaging and transportation make up food costs. The farmer gets 17 cents out of every dollar spent on food. 4.5 cents of the 17 cents gets spent on inputs to raise the crop. Not much food pricing impact on the farmer share of the dollar.

I guess you forgot 2012 when world food prices soared, countries horded grain and countries were destabilized.

There is not an economist alive that would not agree that a government mandated increase in demand will not increase prices. Of course the cure for high prices is high prices and that is where we are now as we have kill off some demand. If the EPA would have reduced the ethanol goals is there anyone who believes the corn market would have reacted negatively.

8. A recent USDA report shows ethanol is more energy efficient to produce than conventional gasoline. Every Btu put into creating ethanol is a 2.3 Btu return 

9. • Every gallon of clean-burning ethanol that we produce in this country decreases the demand for foreign oil and keeps our money here at home where it can create American jobs. 

And decreased our grain exports keeping other folks money away.

Grain exports remain strong. Soybeans and sorghum records. Corn and wheat exports down based on world trade policy more than price. DDG's the co-product of ethanol were exported at record pace, displacing some of the grain tonnage.

You can’t be serious. If we are currently exporting grains, the elimination of ethanol would increase corn exports and lower prices.

The point you are avoiding and talking around is that the artificial creation of demand affects the market supply and demand equilibrium which necessarily increased prices above where they would have been without the artificial requirement. There is no debate there. Other things can affect prices of course over time but other market forces work in addition to government actions and are out of our control to some degree. Government rules are completely under our control and can be changed. Is there any doubt that if political leaders started talking about reducing ethanol requirements corn prices would tumble. There is a reason for that.


10. • The production of more than 14.3 billion gallons of ethanol in 2014 displaced the need for 515 million barrels of oil. 

It also displaced the production of a lot of soybeans, etc. 

very high soybean production for two years in a row, 2014 and 2015. Trend yields continue higher supporting new markets for all grains.

See 9. You can’t grow soybeans in land that has corn growing it, I don’t believe. Yield increase happen regardless of how corn is used or misused.


11. When the RFS was enacted in 2005, America imported 60 percent of its fuel. Today, we import 27 percent. Switching to domestic energy sources has helped reduce our dependence on foreign oil, strengthening our national security and our economy. 

Ever heard of the fracking revolution. You know that is the difference, I know it, as does Bob Dole.

Ethanol is part of a domestic energy policy that this country so desperately needs. The fracking revolution is a good thing. This country is driven on energy and ethanol is part of a much needed domestic energy policy.

 

So you agree that the RFS has less to do with reducing foreign oil imports than domestic production increases. Plus we could use sugar cane which makes a lot more sense than corn. But of course that would require more govenment rules to change. 


12, We spend more than $300 billion a year — nearly $1,000 for every man, woman and child in this country — on foreign oil. Where does ISIS get their money ? ? 

Because if we don’t buy it no one will.

Makes me sleep better at night knowing I didn't contribute to the guy that just cut a Christians head off in a YouTube video.

All that oil we get from Canada is frightening.  Cheap scare tactic that has nothing to do with the issue. We don’t buy their oil and you know it.

 

Sorry completely lost control of all the color coding stuff.



Edited by Douglas 12/2/2015 09:22
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