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Ethanol: The GOP-Supported Rip-Off
Townhall.com ^ | March 5, 2015 | Larry Elder

Posted on 03/05/2015 5:44:03 AM PST by Kaslin

Can someone explain why the "party of limited government" continues, with a straight face, to support ethanol? Republican Sen. Chuck Grassley of Iowa says about the heavily subsided product, "Everything about ethanol is good, good, good."

Really? Really? Really?

Supporters of ethanol -- which we make from corn -- say it reduces our dependence on foreign oil, is cheaper and aids the environment because it burns cleaner than non-blended fossil fuels. In 1996, The New York Times wrote: "At a time when Congress has been overhauling the nation's systems of agricultural subsidies, and public officials across the country have considered huge cuts in benefits to big corporations, ethanol has been untouched. Largely through the efforts of (then soon-to-be 1996 GOP presidential nominee Sen. Bob Dole of Kansas), it has remained one of the most subsidized American industries."

Dole's office said, "As a national leader on agriculture policy, Sen. Dole is a longtime supporter of this clean-burning all-American renewable fuel to promote new markets for American grain, jobs for our nation's farm belt and energy self-sufficiency." The statement noted that Kansas contained 13,500 corn farms and four ethanol plants.

That was nearly 20 years ago. The rip-off continues.

The New York Times recently wrote about the wooing of deep-pocket Republican donors by the 2016 presidential hopefuls: "Some of the gatherings are expressly intended to bring candidates in line with the policy positions of donors on issues like government spending and foreign policy. While Mr. (Bruce) Rastetter's agriculture forum will cover a range of issues, much of the advocacy surrounding the event, including a 'V.I.P. press reception' featuring Iowa's Republican governor, is aimed at pushing the candidates to support the Renewable Fuel Standard, which is coveted by the ethanol industry."

Who is Rastetter? He's a "prominent 'super PAC' donor" who organized the Iowa Agriculture Summit where, per the Times: "Each (Republican presidential hopeful) will submit questions from Mr. Rastetter ... whose business interests range from meat processing to ethanol production."

How do the facts line up with the wondrous claims about ethanol -- clean burning, cheap and decreases our dependency on foreign sources?

Ethanol increases the demand for corn, which means corn prices go up. This causes prices for farmland to rise. It also raises the prices for animal feed, which makes food prices go up. Not just on meat -- prices have gone up on poultry and dairy products, as well as foodstuffs containing cornstarch, cornmeal, corn syrup and other corn products. Meanwhile, the U.S., which as recently as 2007 supplied two-thirds of the world's corn with its exports, now supplies only a little over one-third. And the amount of corn used to produce the ethanol to fill one SUV's gas tank could feed one person for one year.

Today, according to the USDA, ethanol accounts for roughly 6.6 percent of total transport fuel consumption, but consumes about 40 percent of the U.S. corn supply.

In 2007, Rolling Stone's Jeff Goodell wrote in "The Ethanol Scam": "Ethanol doesn't burn cleaner than gasoline, nor is it cheaper. Our current ethanol production represents only 3.5 percent of our gasoline consumption -- yet it consumes twenty percent of the entire U.S. corn crop, causing the price of corn to double in the last two years and raising the threat of hunger in the Third World. And the increasing acreage devoted to corn for ethanol means less land for other staple crops, giving farmers in South America an incentive to carve fields out of tropical forests that help to cool the planet and stave off global warming."

The ethanol-increased demand for corn also entices more farmers to plant more land with corn, instead of balancing their risk by planting other crops. Goodell wrote: "Corn is already the most subsidized crop in America, raking in a total of $51 billion in federal handouts between 1995 and 2005 -- twice as much as wheat subsidies and four times as much as soybeans. Ethanol itself is propped up by hefty subsidies, including a fifty-one-cent-per-gallon tax allowance for refiners. And a study by the International Institute for Sustainable Development found that ethanol subsidies amount to as much as $1.38 per gallon -- about half of ethanol's wholesale market price."

What about the environment?

Goodell writes: "But as a gasoline substitute, ethanol has big problems: Its energy density is one-third less than gasoline, which means you have to burn more of it to get the same amount of power. It also has a nasty tendency to absorb water, so it can't be transported in existing pipelines and must be distributed by truck or rail, which is tremendously inefficient."

Ethanol is a rip-off, pure and simple. Aside from fattening the coffers of ethanol producers like Archer Daniels Midland, it is not justifiable on any basis, not least from a Republican Party that supposedly believes in free, unfettered, non-subsidized markets. Ethanol is an inexcusable theft from taxpayers. That the Republican leadership still supports this undermines the "Republican message" and makes the party look like a band of hypocrites.


TOPICS: Editorial; US: Florida; US: Iowa; US: Texas; US: Wisconsin
KEYWORDS: 2016election; brucerastetter; election2016; energy; ethanol; florida; iowa; jebbush; larryelder; ntsa; opec; rollingstone; scottwalker; tedcruz; texas; texasoilman; wisconsin
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1 posted on 03/05/2015 5:44:03 AM PST by Kaslin
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To: Kaslin

Corporate welfare and GOPee graft and corruption.


2 posted on 03/05/2015 5:46:20 AM PST by Paladin2
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To: Kaslin

Does our gummint mandate that ethanol be blended with gasoline? I for one would gladly pay more for PURE gasoline. I know I could go to a local marina for that, but seems to me there would be a ready market, especially as the price of crude supposedly will dive this spring.


3 posted on 03/05/2015 5:48:57 AM PST by tgusa
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To: Kaslin

This is a total scam. Ethanol attracts water and lowers gas mileage.


4 posted on 03/05/2015 5:49:06 AM PST by YankeeReb
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To: tgusa
Does our gummint mandate that ethanol be blended with gasoline?

The mandate is a certain amount of ethanol has to be sold in the gasoline market. Only certain areas require reformulted gasoline that contains ethanol.

So they do mandate the use of ethanol, but the feds do not mandate every gallon contains ethanol.

5 posted on 03/05/2015 5:51:51 AM PST by thackney (life is fragile, handle with prayer)
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To: Kaslin

Its extreme subsidy and its transport difficulties and energy content delivery aside, ethanol is one of the worst tricks played on the car owner. It destroys seals, gaskets and ruins sensors (O2, in particularly). Since its large scale use, I’ve had two Hondas, a Dodge Ram and an F150 all get the same O2 sensor error that would lead the layman to believe their catalytic convertor was going bad.

I just now have and OBDII CAN reader/controller than can kill the service light. I’d like to take all the politicians who pushed this stuff through and mash their faces in a cow pie.


6 posted on 03/05/2015 5:52:28 AM PST by Gaffer
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To: Kaslin

there is no difference between the GOP and the Dems.

What we are seeing with John Boehner and Mitch McConnell is the same we saw with Nancy Pelosi and Harry Reid: approval of expanding government and support of a runaway POTUS’s desire to take down America.

I will NEVER give to the GOP again.


7 posted on 03/05/2015 5:54:22 AM PST by bestintxas (Every time a RINO is defeated a founding father gets his wings.)
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To: tgusa

“I for one would gladly pay more for PURE gasoline”

try these places. I fill up at a feed store close by
http://pure-gas.org/index.jsp?stateprov=TX


8 posted on 03/05/2015 5:56:03 AM PST by bestintxas (Every time a RINO is defeated a founding father gets his wings.)
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To: Kaslin

Ethanol has to be distilled, requiring heat.

The energy (BTU’s) required to heat the corn to the proper boiling point to distill ethanol is in excess of the energy (BTU’s) stored in the ethanol.

It makes sense to distill corn into moonshine, potatoes into vodka and grain or peat into whiskey as the product gains in value.

Ethanol is distilled for votes.


9 posted on 03/05/2015 6:02:05 AM PST by BBB333 (Q: Which is grammatically correct? Joe Biden IS or Joe Biden ARE an idiot?)
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To: bestintxas

The real Iowa kingmaker

A dozen potential Republican presidential candidates are about to sit down, one by one, with the biggest GOP donor in Iowa — a multimillionaire few people outside the state have ever heard of.

Bruce Rastetter, an agribusiness mogul who’s made a fortune in pork, ethanol and farm real estate, has long worked behind the scenes to help bankroll conservatives across the country, but Saturday is a public coming out party of sorts for Rastetter as he hosts the first-ever Iowa Agriculture Summit. It’s an event designed to promote farm policy in a state where pigs outnumber voters 10 to one, but it’s also a bold display of the political power Rastetter has amassed — and a reminder to candidates that his endorsement would be a big get ahead of the Iowa caucuses.

It’s an unusually public gig for a donor: Rastetter will chat with each candidate on-stage for 20 minutes before 1,000 Iowans and dozens of media outlets. He’ll get to ask Jeb Bush what exactly he thinks about ethanol, pepper Scott Walker with questions about EPA regulations and quiz Marco Rubio about where he stands on GMO labeling, if he wants. Chris Christie, Ted Cruz, Rick Santorum, Donald Trump and Mike Huckabee will enter the agriculture policy ring, too.

Excerpt. Read more: Politico

10 posted on 03/05/2015 6:02:17 AM PST by COBOL2Java ("God save America" - we are at the dawn of a new dark age)
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To: Paladin2
Corporate welfare and GOPee graft and corruption.

Not to mention the Iowa caucuses.

11 posted on 03/05/2015 6:02:22 AM PST by Carry_Okie (Democrats: the Party of slavery to the immensely wealthy for over 200 years.)
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To: Kaslin
Today, according to the USDA, ethanol accounts for roughly 6.6 percent of total transport fuel consumption, but consumes about 40 percent of the U.S. corn supply.

We're using topsoil as fuel, the dumbest environmental policy in American history.

12 posted on 03/05/2015 6:06:58 AM PST by Carry_Okie (Democrats: the Party of slavery to the immensely wealthy for over 200 years.)
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To: bestintxas

A station in my neighborhood is now carrying the non-corn stuff. I bought 5 gallons for the two running oldies. Beats a30 minute trek.


13 posted on 03/05/2015 6:11:30 AM PST by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: bestintxas

Thanks! Looks like most of the stations offering ethanol-free gas are out in the ‘country ‘ - I’ll have to check the Southern States stations when I’m out that way.


14 posted on 03/05/2015 6:19:36 AM PST by tgusa
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To: Gaffer

ROTFLMAO (mash faces in a cow pie)

I ruined a perfectly good John Deere lawnmower using that ethanol crap.


15 posted on 03/05/2015 6:22:02 AM PST by tgusa
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To: Carry_Okie
Government mandates are a lousy idea; however, ethanol doesn't "consume" 40% of the US corn crop.

Corn used as an ethanol feedstock is also used as animal feed.

16 posted on 03/05/2015 6:24:05 AM PST by Mr. Lucky
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To: BBB333
The energy (BTU’s) required to heat the corn to the proper boiling point to distill ethanol is in excess of the energy (BTU’s) stored in the ethanol.

While I am no fan of the Ethanol Mandate, the claim above is not true.

17 posted on 03/05/2015 6:29:06 AM PST by thackney (life is fragile, handle with prayer)
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To: tgusa

Oh yeah....ethanol will eat up gaskets in small engines, especially those flimsy gaskets and cheap plastic fuel lines in 2 cycle engines for sure.


18 posted on 03/05/2015 6:31:23 AM PST by Gaffer
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To: thackney

You, most assuredly, are misinformed.

UC scientist says ethanol uses more energy than it makes:

http://www.sfgate.com/news/article/UC-scientist-says-ethanol-uses-more-energy-than-2659237.php

Study: Ethanol Production Consumes Six Units Of Energy To Produce Just One:

http://www.sciencedaily.com/releases/2005/03/050329132436.htm

Efficiency and Environmental Improvements of Corn Ethanol Production (The Net Energy Balance focuses on whether it takes more energy to produce ethanol than is contained in the ethanol. The answer to this question is yes. If it took less, ethanol production would be breaking the laws of physics and creating energy where there was none before.):

http://www.agmrc.org/renewable_energy/ethanol/efficiency-and-environmental-improvements-of-corn-ethanol-production/


19 posted on 03/05/2015 6:40:26 AM PST by BBB333 (Q: Which is grammatically correct? Joe Biden IS or Joe Biden ARE an idiot?)
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To: BBB333

That is only true if you count the “solar power” used to grow the corn.

The Energy Balance of
Corn Ethanol: An Update
http://www.transportation.anl.gov/pdfs/AF/265.pdf


20 posted on 03/05/2015 6:44:58 AM PST by thackney (life is fragile, handle with prayer)
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