Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Great news! Ethanol plant reopens in midst of massive drought (Corn to burnů on the taxpayer dime)
Hotair ^ | 08/10/2012 | Jazz Shaw

Posted on 08/10/2012 7:29:00 AM PDT by SeekAndFind

Not too long ago, we took a look at the effect the drought is having on the nation's farmers, particularly those producing corn. The situation isn't improving, as is being widely reported, and the farmers are in dire straights. Prices are rising for not only corn for the dinner table, but all the other products which use corn in their manufacturing processes. So it would be rather silly to think about burning even more corn to make unprofitable ethanol, right?

Think again.

Despite raging concerns about the effect the worst drought of 50 years on the corn harvest, the former Bionol ethanol plant in Pennsylvania is back up and running after being purchased by Zeeland Farm Services (ZFS). Production began last month at the now named Pennsylvania Grain Processing LLC and is producing ethanol, dry distiller’s grains and other products.

Nearly all of the former employees of the plant were brought back and there are plans to hire additional employees. Cliff Meeuwsen said the plant is up and running at full capacity. ZFS also owns and operates corn and soybean processing plants in Nebraska and Michigan and is no stranger to operating agricultural businesses in times of challenges.

On the surface this probably sounds like madness in terms of a marketing plan, right? I mean, ethanol isn't even profitable on the free market when corn is plentiful. With prices rising, you'd have to be crazy to reopen a plant at a time like this, wouldn't you? Yes… crazy like a fox.

Global pressure on the United States to relax its ethanol quota mounted on Thursday as the top World Bank food official said an “immediate, temporary suspension” of the mandate could help head off another world food crisis.

As the surge in corn prices revives a fierce food versus fuel debate, José Graziano da Silva, the director-general of the UN’s Food and Agricultural Organization, wrote in the Financial Times newspaper that competition for a U.S. corn crop that has been decimated by drought was only going to intensify.

“Much of the reduced crop will be claimed by biofuel production in line with U.S. federal mandates, leaving even less for food and feed markets,” he wrote in an op-ed just a day before the U.S. government issues a pivotal crop report that is expected to show U.S. corn output falling to the smallest in six years and stockpiles at near record lows.

But hey! It brought back dozens of jobs in an election year! You can’t just turn around and shut it down just because people are running out of food. The fact is, Washington has created a false market for corn-based ethanol no matter how high the price goes. The taxpayer dollars will keep on flowing, so there will always be somebody there to vacuum them up.

We’re still burning our seed corn. Literally. But don’t expect to see an about face from the White House on this one with only a couple of months until the election.


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: biofuels; corn; ethanol

1 posted on 08/10/2012 7:29:14 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

I don’t think they care about higher food prices or fuel prices. In fact the lefties often rally behind higher fuel prices. What better way to do that than mandate expensive ethanol usage. As for the food prices, well why would they care about that, after all food shortages is a form of population control.


2 posted on 08/10/2012 7:41:42 AM PDT by chaos_5
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Unless they can make ethanol from dead and dry corn plants, this should not happen.
It's the left's modus operandi, when something does not work, do more of it (then blame the rich).

3 posted on 08/10/2012 7:54:40 AM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
and the farmers are in dire straights...

I understand that the farmers are also in dire straits over this...

4 posted on 08/10/2012 7:58:48 AM PDT by Zeppo ("Happy Pony is on - and I'm NOT missing Happy Pony")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Obama's energy policy:

1. Nix the Keystone pipeline, an uninterpretable source of ethical oil from your closest ally and trading partner.

2. Close coal mines and coal generating plants, driving up the price of electricity.

3. Stop and discourage drilling for oil.

4. Don't build nuclear plants.

5. Burn a basic food crop in the nation's gas tanks.

Sounds like a plan. At least its working.

5 posted on 08/10/2012 8:16:49 AM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Zeppo

I understand that the farmers are also in dire straits over this...

Some of them were probably led to believe they got their money for nothing and their chicks for free, too.

http://www.youtube.com/watch?v=lAD6Obi7Cag

 

6 posted on 08/10/2012 8:26:30 AM PDT by OldEarlGray (The POTUS is FUBAR until the White Hut is sanitized with American Tea)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind

Burning food during a drought is morally obscene.


7 posted on 08/10/2012 9:16:58 AM PDT by TexasRepublic (Socialism is the gospel of envy and the religion of thieves)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

This should point out to all the young voters what this administration is doing wrong. We have in this country fields full of burnt out corn, which would have fed people. Knowing this, this congress is going on with the 15% ethanol in the gasoline anyway. It doesn’t matter that they are taking food from people. What matters is that they keep their promise to the ethanol industry to force people to use it in the gas. That is what democrats are. Remember when you vote!


8 posted on 08/10/2012 9:22:06 AM PDT by maxwellsmart_agent
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson