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re: Comments needed on E15 (fuel containing up to 15% ethanol). Do work, OB.
Posted on 7/1/16 at 9:32 pm to Tom Selleck
Posted on 7/1/16 at 9:32 pm to Tom Selleck
quote:
Ethanol has done very little to prop up the corn price for growers. Subsidies go to ethanol plants,
Thats not how economics work.
If 25% of corn produced goes to ethanol. Then that is a new market and the farmer directly benefits from that new market. Does not matter if they are not the direct recipient of the actual subsidy payment.
Posted on 7/1/16 at 9:50 pm to highcotton2
I think the claim was, everything a farmer has Is subsidized and the reason farmers grow corn is because of ethanol subsidies. I'm not defending ethanol. I hate it. It's stupid. But it's just like wind and solar energy. It doesn't work without government mandated quotas and tax cuts/subsidies/incentives.
And that's not how farming works. Farmers don't know nor do most care where their corn goes once they cut and sell it. Ethanol may have, many years ago, driven the price of corn up short term. It's not a new market, in fact some plants closed or did not get built. Farmers aren't growing corn because of ethanol.
And that's not how farming works. Farmers don't know nor do most care where their corn goes once they cut and sell it. Ethanol may have, many years ago, driven the price of corn up short term. It's not a new market, in fact some plants closed or did not get built. Farmers aren't growing corn because of ethanol.
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