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Galahad, Alberta | Bang on!! Finally someone said it. Boom, bust and echo!! High cash rents and the skyrocketing price of N will take all the profit out of the ethanol game for the farmer. You won't make anymore, just have more money passing through your hands. I haven't been around all that many years, but I have noticed that whenever a government wants to jumpstart an industry by offering a tax break, incentive or subsidy, it's because the industry isn't viable, and will die when the handout is gone. So when the political will to keep ethanol going isn't there, I wouldn't want to own an ethanol plant. Some may argue that high oil prices will dictate a need for ethanol, but ethanol takes a lot of energy to produce, from the diesel in the farm machinery, to the manufacturing processes. So the cost of ethanol production goes up in relation so the profit shrinks there as well. I do have a question for US farmers. What will be the impact of the current high corn, soy, etc. prices on your subsidies? Will you get any payouts this year? Next? If not, one could say that the ethanol program is just a new subsidy for farmers with the bonus of addressing energy concerns and keeping the tree huggers happy. 3 birds with one stone!! | |
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ethanol boom-------HOW LONG?
