Skip to comments.Let ethanol have a go in a free market
Posted on 06/26/2011 6:20:11 AM PDT by rhema
When the gasohol governor marches into Iowa and says that ethanol's subsidy days are numbered because "we simply can't afford them," you know the times they are a-changin'.
Tim Pawlenty's courage may have been borne of necessity, but nonetheless, it is in stark contrast to Newt Gingrich, who went to Des Moines and got on bended knee in front of the Renewable Fuels Association.
Or for that matter, Al Gore, who not long ago admitted that the only reason he supported ethanol in Iowa was to secure the presidency. Profiles in courage they're not.
But now, a bipartisan majority in the U.S. Senate has voted to end more than three decades of taxpayer support for the biofuel as a potential component of a deficit-reduction deal. Even former President Bill Clinton has warned of "food riots" as a result of diverting nearly 40 percent of the nation's corn crop to ethanol.
The USDA reports that America's corn reserves have hit their lowest level since the mid-1990s, resulting in a doubling of the price of corn from just a few years ago. Indeed, corn futures now hover around $7 per bushel.
A few stakeholders may applaud the rising prices, but there's a difference between genuine prosperity and a government-induced commodity and agricultural land bubble that threatens to burst just as soon as the subsidies stop.
In the meantime, consumers are paying for this feel-good energy policy, as everything from the cost of groceries to livestock feed is heading north.
The issue should be of special importance to the GOP. The Tea Party types who swept Republicans into power in 2010 are now demanding a return to real markets and a departure from the crony capitalism dominated by government favor.
Besides, ethanol subsidies aren't going to family farms, they're going to large corporate
(Excerpt) Read more at startribune.com ...
There are a couple of diverse (they sell variety) vegetable farms near me. They sell direct to the public ad I know they aren’t being subsidized.
Memo to Michele B........
Memo to Michele B........
Solar, wind, ethanol, etc. Let them rise or fall in a truly free market. The most effective energy solutions for particular applications will be found without the heavy hand of government.
And to Mr. T-Boone Pickens co-sponsor himself, Ron Paul
Down the street from me there’s a farmer who plants acres of cabbage. Then the next year it’s some kind of squash or pumpkins and every year it gets plowed under. This really ticks me off, especially when food pantries would love to receive fresh produce! I would assume this jacka$$ is getting some sort of subsidy!
We are actually exporting ethanol. Those importers realize they’re also affecting their imports of corn, wheat etc...STUPID!!!
The government needs to also remove use mandates. Without that you are just being forced into buying high cost solutions rather than choosing the best solution for your situation. This is not free market.
I would assume that farming neighbor would have no problem with your picking up some of that surplus crop and delivering it to the food bank.
...but T. Boone is not asking to be President with tea party credentials.
Pawlenty on ethanol program tax credits (subsidies) “we simply can’t afford them,”. So, we can afford the other ones?
Dutch Boy: “The government needs to also remove use mandates.”
Agree, but I’m not opposed to regulations to protect the environment and citizens from reasonable harm. Reasonable is subjective of course, but let’s just say we’re way past the point of reasonableness right now.
The free market is the best way to find solutions for given problems. For example, there might be an abundance of excess corn in some areas, and that corn might be best used to make ethanol. Who knows? I’m certainly not qualified to say. Same thing for bureaucrats in D.C. Like they know what’s best in a given situation. That’s laughable.
On the other hand, if a company wants to dump waste products from ethanol production into local streams to save money, then maybe there needs to be regulations to address that. Those regulations shouldn’t come from D.C., though.
This is Jersey, I would be arrested for trespassing!
I’m not sure who the farmer is. I know the owner/retired farmer of the land, but I think he leases it out these days.
Could be part of this program. You know the one. They pay you not to farm your farm.
When the gasohol governor marches into Iowa and says that ethanol’s subsidy days are numbered because “we simply can’t afford them,”
Lets not forget that T-paw rammed this crap down our gas tanks in Minnesota and upped it to 20%!
I don't think civ means you just roll in and start loading up the station wagon. Do some groundwork. Don't just furrow your brow. Glean some information. Cultivate a friendship...
The goverment is the only place where a product can be created which would fail in the “free market”.
After the product is not wanted or needed and in many cases causes more problems your goverment can mandate that it be used anyway.
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