The great corn gold rush

CNN Money.com ^ | March 30 2007 | Jon Birger

[Parmy]

Around here we have farmers who grow corn for dairies and I’ve heard that there is no good corn seed to be found, it has all been bought up and they are looking all over the country to get some. I also heard that sorghum seed is short this year.

Unintended consequences when government forces something. The actual market goes to hell, but given enough time the market forces will seek and obtain equilibrium.

[P-40]

No, that the whole world of alternative fuels turns around corn farmers.

[Toddsterpatriot]

Not the entire world, just the most expensive portion of it.

[P-40]

Then you know very little.

[Toddsterpatriot]

Enlighten me.

[P-40]

I very seriously doubt that you wish to be. Not much has changed since the time of Galileo.

[Toddsterpatriot]

I very seriously doubt that you wish to be.

I very seriously doubt that you can show an alternative fuel that costs more in subsidies than ethanol currently does, but I'm willing to listen.

Not much has changed since the time of Galileo.

Yeah, the guys who thought the Earth was the center of the universe are just like the guys who question the wisdom of (tax payer supported) ethanol. Why didn't I see it before? LOL!

[P-40]

No, I doubt you would be willing to listen or even make an attempt to understand. If it were up to people like you, we’d still be living in caves.

[Toddsterpatriot]

Because opposing subsidies is just like opposing progress. Got it.

[P-40]

No, because not even bothering to understand the arguments you are opposing is opposing progress.

[Toddsterpatriot]

I understand your argument. A tax credit is not a subsidy.

[TKDietz]

“Corn was 2.25 in 1976, Thoses farmers have been raking in the money over 30 years.”

Are you being sarcastic? If corn prices remained stagnant for thirty years while the cost of everything else including the cost of growing corn went up, that’s not such a good thing for corn farmers. It means they were earning less and less after expenses every year. That’s why corn farmers tend to like ethanol. Increased demand for corn is driving prices up so that they can finally make a decent profit.

[TKDietz]

Per gallon at least biodiesel costs more in subsidies than ethanol. Most biodiesel produced in this country is made from soybeans, a subsidized crop like corn. Then the government gives blenders a dollar tax credit for every gallon of biodiesel they blend in with petroleum based diesel, compared to the fifty one cent tax credit blenders get for every gallon of ethanol they blend in with gasoline.

The government also spends an awful lot on the nuclear energy industry. I don’t know how much they spend in total, but it may be more than what they currently spend on ethanol. The government has spent billion and billions of dollars on nuclear energy. I’m all for building more nuclear power plants, but I think the reality is that that’s not going to happen unless the government ponies up billions and billions in subsidies to make it happen. It costs a fortune to build these plants and maintain them. It’s a lot cheaper to produce electricity from coal.

[Toddsterpatriot]

Per gallon at least biodiesel costs more in subsidies than ethanol.

Total dollars spent, ethanol costs more.

I’m all for building more nuclear power plants, but I think the reality is that that’s not going to happen unless the government ponies up billions and billions in subsidies to make it happen.

What are the current subsidies nuclear receives? If you know. Thanks.