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ethanol and the corn and cattle markets
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Douglas
Posted 12/15/2015 09:00 (#4961084 - in reply to #4960899)
Subject: RE: ethanol and the corn and cattle markets


Central North Carolina

Higher demand for a product increases prices. Government mandated demand for corn in ethanol production increases prices higher than than they would otherwise be. I don't think that is debatable. No it is not a direct subsidy but higher prices due to a government mandate are the same thing, more money in grain farmers pockets.

Come on guys quit acting like slick politicians spinning this thing. The seller higher price is someone else higher cost (or opportunity cost in the case of a farmer/feeder) and that includes the livestock producers.

Of course there are a million other things that can affect prices/supply/demand such as weather, exchange rates, yields, new technology, diet changes, etc. etc. etc. Most of those we can't change but ethanol policy can be changed. 



Edited by Douglas 12/15/2015 09:01
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