Corn Supplies/Cereal Prices
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Topic: Corn Supplies/Cereal Prices
Posted By: Chris/CT
Subject: Corn Supplies/Cereal Prices
Date Posted: 12 Feb 2011 at 8:12am
They just were talking about the lowest corn supply in 15 years? Guess Ethanol demand causes more ethanol corn production [easier] and less food grade corn. I don't know what yourr paying for a box of cereal in your area, but almost $5 for a medium box around here, crazy price in my opinion. Are you corn growers going to grow more food grade corn to help supply this year?
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Replies:
Posted By: DMiller
Date Posted: 12 Feb 2011 at 8:18am
It's going to worsen, as the morning paper made note of ethanol only corn/grain stocks to be grown in fields this season.
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Posted By: John (C-IL)
Date Posted: 12 Feb 2011 at 8:20am
Remember that 50% of our grain production goes to livestock. Maybe we should all become vegans! NOT!
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Posted By: AaronSEIA
Date Posted: 12 Feb 2011 at 8:25am
Before this turns into a bash ethanol and the corn grower thing, take a look at this document and ask yourself one question...who is really making the money off of groceries.
AaronSEIA
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Posted By: BobHnwO
Date Posted: 12 Feb 2011 at 8:28am
I buy most groceries at Aldi,their price for cereal is about 1/2 cost of name brand cereal,taste the same,most of the cost of name brand products is advertising,plus just because it is name brand!!
------------- Why do today what you can put off til tomorrow.
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Posted By: Mike Kroupa
Date Posted: 12 Feb 2011 at 8:28am
Everyone notice how last time, 08 ,when corn hit alltime highs how the prices went up and the packaging got smaller, when commodity prices dropped that fall grocery prices stayed the same. The United States still has and always will have the cheapest and most abundant food supply in the world. We plan planting our normal 50/50 corn/ sb rotation with 160 acres second year corn., Mike
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Posted By: E7018
Date Posted: 12 Feb 2011 at 8:35am
Yea, but. How many boxes of corn flakes or loaves of bread does a family buy in a month compred to gallons of gas?
The ethanol plant only takes about a third of the food value out of corn for the beef animal. With all the land that is only good for pasture, the ethanol industry and the beef industry is a good fit. It sure makes some good tasting prime rib. Sure better than eating a pan of boiled corn.
I farmed in the early 80's and there was no market for corn at all. We would come up to a harvest and the bins were still full of last year's crop. Now, when there is a use for the stuff, people say "you can't do that".
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Posted By: DMiller
Date Posted: 12 Feb 2011 at 8:41am
I'm not bashing ethanol, even as I should but it is raising the value of corn with other grains making the farm a little better for feeding our own families.
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Posted By: Dave in il
Date Posted: 12 Feb 2011 at 8:41am
What makes you think the price of comodities has anything to do with the cost of a box of cereal? There's well under a dollars worth of grain in a $5 box of cereal at today's comodities prices.
Corn is corn, it doesn't make any difference if it's for ethanol or livestock feed. Food grade corn is a different market and the majority is produce by contract with the end user. The same with seed.
As far as ethanol, yes it supports the price of corn but not as much as demand from China and the rest of the world at this time. Not that I'm ethanols biggest fan of, but about 80% of a bushel of corn is available for livestock feed AFTER it has been use to make ethanol as dried distillers grains (DDGs).
Still it's tough on the livestock industry with these prices.
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Posted By: 427435
Date Posted: 12 Feb 2011 at 9:00am
AaronSEIA wrote:
Before this turns into a bash ethanol and the corn grower thing, take a look at this document and ask yourself one question...who is really making the money off of groceries.
AaronSEIA
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Could you provide the link to the above graphic, please. I want to be able to post it on another forum as soon as someone bashes farmers or ethanol.
------------- Mark
B10 Allis, 917 Allis, 7116 Simplicity, 7790 Simplicity Diesel, GTH-L Simplicity
Ignorance is curable-----stupidity is not.
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 9:10am
I will bash ethanol unashamedly. It is absolutely one of the stupidest things I have ever seen to take a staple food source and use it to make fuel. Stupid is the only way it can be seen logically, so I bash away at it honesty and truthfully. I don't think there is any chance of it being said that I danced around the issue.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: Pat the Plumber CIL
Date Posted: 12 Feb 2011 at 9:15am
Not a big fan of ethanol for what it does when it sits in a engine or gas tank for a while.With oil consumption going up in China and India ethanol is our only way to try and reduce that.Corn is probably easiest to convert to ethanol mainly because we grow so much.My hope is that we can start using other sources to make it out of.Brazil and Argentina make a tremendous amount of ethanol out of sugar beets.Switchgrass has shown some promise. Lets use corn for now with the hope we can convert to another source in the future.Have read alot of research is going into producing ethanol from seaweed? in the sea.
The long and short of it is we need to come up with another energy source that we can produce here.Nothing would make me happier than if the Middle east never gets another cent from us.Nobody would give a rats ass about that area and we could stop going over there to "stabilize" things
.
------------- You only need to know 3 things to be a plumber;Crap rolls down hill,Hot is on the left and Don't bite your fingernails
1964 D-17 SIV 3 Pt.WF,1964 D-15 Ser II 3pt.WF ,1960 D-17 SI NF,1956 WD 45 WF.
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Posted By: oldironguy
Date Posted: 12 Feb 2011 at 9:50am
There is always the option of the US living within its energy means. Why should we expect other nations to provide the energy we choose to use so extravagantly? we still pay less and use more energy than most other nations. Seems to me a little conservation and greater development of solar, hydro and wind are in order.
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Posted By: Steve M C/IL
Date Posted: 12 Feb 2011 at 10:21am
Ethanol is a loser.It has to be subsidised to get produced.
I reject the standard talk about how we got to find all sorts of alternative energy to get away from forien oil. The real answer is to develope our own oil and natural gas but the sheep have been taught to believe otherwise.
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Posted By: Jim Lindemood
Date Posted: 12 Feb 2011 at 10:43am
Pretty complicated situation we have worked ourselves into --- we are good at doing that to ourselves. There is no doubt that we need to get off of middle east oil. Also there is no doubt that we waste a lot of energy. But, it does bother me that we subsidize domestic ethanol production ($.45) a gallon -- if it is not viable on it's on, then we should be looking at other options. We due import some ethanol -- and tax it heavily. The water required to produce it could be a problem as well. No easy answer to energy. Some is oil itself, but a good deal also has to do with refinery capacity - which has difficulty expanding due to our own Govt. regulations. Can't expand our own oil / gas production for the same reason. We have met the enemy and it is us.
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Posted By: Jim Lindemood
Date Posted: 12 Feb 2011 at 10:44am
And add coal into this equation and it does not get any better.
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Posted By: Coke-in-MN
Date Posted: 12 Feb 2011 at 10:57am
Solar, Hydro, Wind, ALL LOOSER all need subsidy to be used and all Made in China well except for Hydro which is a blocked idea by the greenies as it prevents flow of rivers, floods land and distroys the planet and keeps fish from being free range fish.
Ethanol and Bio Diesel - B100 looser as also subsidized.
Switch Grass and other such , still in research stage.
Coal Years and years of energy
Nuclear, OOPS cant talk about that
Yes the US is one of the largest users of energy in the world overall and per capita, but the US has one of the highest living standards, best highway and transportation systems and the easiest movement of it's citizens anywhere within the continent than any nation.
we are asked to pay for what we use and the price may be high but the poverty level is low also in the US. Not many people are trying t get into Bangladesh or Somalia because of their good living standards.
Food or fuel ? seems the Brazilian alcohol business is from cane sugar because of it's climate but now that they have a expanding petroleum industry it is loosing a importance there . Yet the US will not allow import of cheaper Alcohol from foreign producers in order to shore up and subsidies US production.
------------- Faith isn't a jump in the dark. It is a walk in the light. Faith is not guessing; it is knowing something. "Challenges are what make life interesting; overcoming them is what makes life meaningful."
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Posted By: BLee Mn
Date Posted: 12 Feb 2011 at 11:35am
AND "OIL" ISNT SUBSIDIZED??? COME ON THINK ABOUT IT!!!!!! what are you going to use for fuel when world supply of oil is depleted. Tree Huggers and Ethanol Bashers will Be SOL
------------- Cowboy UP
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Posted By: JohnCO
Date Posted: 12 Feb 2011 at 12:19pm
You know guys this should really be on the buildings, varmints, trucks etc. page or perhaps politics. For the graph of costs, go to NFU.org. and then click on the "Farmers Share" link. BTW, all energy is subsidized in one way or another. Oil has been at the government teet for a long time, as has coal and nuclear is at a whole higher level when it comes to gov. subsidies.
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 1:21pm
Can you eat ethanol since corn won't be available for food consumption at anything near a reasonable price when oil runs out? Ethanol from corn virtually has to be an alternative whose existence is mostly due to those who want to line their pockets at the publics expense. Ethanol from corn is a very poor alternative energy source. I used stupid to describe it earlier because I truly believe that is the best description there is.
Yes, we need to look for other energy sources, but they don't need to be derived from our food supply.
I agree this topic is better suited for the political page. The political forum is better suited to topics that cause thermal expansion and global warming from the expulsion of unsavory gasses. LOL...
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: CTuckerNWIL
Date Posted: 12 Feb 2011 at 1:31pm
Rogers wrote:
I will bash ethanol unashamedly. It is absolutely one of the stupidest things I have ever seen to take a staple food source and use it to make fuel. Stupid is the only way it can be seen logically, so I bash away at it honesty and truthfully. I don't think there is any chance of it being said that I danced around the issue. |
Evidently you have no concept of how this works. If you feed corn to raise meat you have meat to eat. If you use corn for ethanol, you have a clean burning product and 90% of the original food value left over to raise meat. We are not taking a "staple food source and use it to make fuel". Pat, I don't think it would matter much if we went switch grass or any other renewable source for ethanol. If switch grass was needed to make ethanol, and farmers started growing it, we would loose corn production wouldn't we. Now can we take the left overs from switch grass ethanol and feed it to our cattle to grow meat? Probably not the best answer. If government controls over nuclear power and coal power were reasonable, we could stop importing oil and let the Arabs worry about how to convert their oil to food. There is no doubt, we waste energy, my SIL will stand with the fridg door open for 10 minutes at a time and never get anything out, but choking the energy production industry will never reduce our consumption unless we stop printing new money to buy oil with.
------------- http://www.ae-ta.com" rel="nofollow - http://www.ae-ta.com Lena 1935 WC12xxx, Willie 1951 CA6xx Dad bought new, 1954WD45 PS, 1960 D17 NF
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Posted By: JohnCO
Date Posted: 12 Feb 2011 at 1:49pm
There is a cane sugar plant on Kauai, Hawaii that is now making ethanol, most of which is used on the islands. The sugar market in Hawaii isn't real good as labor is high, mostly because of the cost of living there, and shipping is expensive to the mainland. All the remaining sugar plants in Hawaii burn the waste material to make heat for the sugar process and electricity which is tied to the grid. The bottom line for all energy is that it is going to get more expensive, subsidies or not, the cost for hydro, wind and solar should go up less then extracted forms, such as coal and oil. Even the nuclear proponents admit that nuke power will never be affordable without government support. Also, as with coal, nukes use a tremendous amount of water for cooling. In the west, water is subsidized by the government, local, state and fed. Solar and wind doesn't need much water. The cheapest way is through conservation.
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 2:34pm
I have a very clear understanding of how things work.
Ethanol has an energy per unit volume of approximately 34% less than gasoline. If you decided to build an engine that ran solely on ethanol you would end up with an engine that consumed more fuel to give equal power output. After all was said and done an ethanol engine would be 20 to 30% less fuel efficient than a gasoline engine. (For a quick reference look at wikipedia, but if you look you will find similar information in other places.)
Aside from the reduced efficiency of ethanol is the fact that an internal combustion engine is very inefficient. As I have said before, we need to look for alternative energy sources, but we can't jump at every one as if it is the answer. There needs to be solid proof. That does not exist for ethanol. When you look at the shortfalls of ethanol and take into account a growing world population the concept of using a food source to produce alternative energy is very poorly thought out. Corn is a food source by the way.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: Gerald J.
Date Posted: 12 Feb 2011 at 3:04pm
But that ethanol special engine could make better use of the fuel by running a higher compression ratio to get more efficiency than it can ever get with gasoline.
As for less than a buck of grain in a box of cereal, think again. At $6 a bushel (which I didn't get for my 2010 crop because I sold it all LAST YEAR) and 56 pounds to the bushel a pound of corn costs 10.7 cents and its a sure bet the cereal companies locked up futures contracts at $4.75 a bushel or better last year. In the large size 16 ounce cereal package there could be more like 8 cents worth of corn. Yet it retails for $4 or more. We farmers aren't getting rich from retail cereals, but we are doing better than break even or loosing at these prices. But there's another factor, land rents, fertilizer costs, seed costs, FUEL costs, and herbicide costs have all risen right along with the market price to keep the return poorer in farming which can take a couple million buck investment in land and equipment than stocks and bonds or CDs at the bank. A 3% return on a couple million investment isn't good but its better than a net loss that has been the norm.
Gerald J.
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 4:19pm
The higher compression is why the fuel efficiency difference would be 20 to 30% instead of 34%. Ethanol is a bad choice as an alternative to gas. Short of padding someones pockets I don't believe there is a reason for ethanol. The only way it even makes it into fuel is because of government subsidies. Economically it can't even stand on its own.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: Gordy
Date Posted: 12 Feb 2011 at 4:27pm
Last week corn over $7.00 soybeans over $14.00 do you think the government will admit we may have a little inflation now?
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Posted By: michaelwis
Date Posted: 12 Feb 2011 at 4:31pm
Its been sweet for us guys producing corn . Yes it is heavily subsidized .. And our young men and women arent diyng to protect it either..So the debate goes on and on .. Really nobodys right and nobodys wrong on this one ..
------------- WD WD45 DIESEL D 14 D-15 SERIES 2 190XT TERRA TIGER ac allcrop 60 GLEANER F 6060 7040.and attachments for all Proud to be an active farmer
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Posted By: michaelwis
Date Posted: 12 Feb 2011 at 4:33pm
Gordy wrote:
Last week corn over $7.00 soybeans over $14.00 do you think the government will admit we may have a little inflation now? |
And these prices are a good thing .. right ? I,M hopein for 8 and 16 ..here soon
------------- WD WD45 DIESEL D 14 D-15 SERIES 2 190XT TERRA TIGER ac allcrop 60 GLEANER F 6060 7040.and attachments for all Proud to be an active farmer
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Posted By: Gerald J.
Date Posted: 12 Feb 2011 at 4:36pm
Those are CBOT prices. not cash prices in the country and without a crystal ball to show the harvest prices were not the best ever (which they nearly were) few farmer have corn to sell. Those CBOT prices have been driven up by the same speculators that drive up crude oil and gasoline prices. Some say half the money in the CBOT grain trade is funds, not growers and users of grain. When the price of the grain in a box of cereal or loaf of bread is only a couple percent of the retail price of that product its hardly the cost of the grain that has caused the retail price to soar. It must be profit taking at retail or manufacturing or their costs like fuel and transportation.
Push corn prices back to $2 like they were 3 or 4 years ago, and then look out hunger because lots of farmers will go broke at today's input costs for fuel, seed, fertilizer, and herbicides.
Gerald J.
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Posted By: steve(ill)
Date Posted: 12 Feb 2011 at 4:43pm
wind, solar, and ethanol dont stand on their own. Way to expensive... tell me how we subsidise coal and nuke ??? AS far as i know the govt passes endless stupid rules trying to condemn both. If they would keep their regulatory nose out of it, the cost of power would only increase with the cost of living and be very reasonable. The EPA among others, is killing us.
------------- Like them all, but love the "B"s.
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Posted By: CTuckerNWIL
Date Posted: 12 Feb 2011 at 5:39pm
Yes corn is a food source, but we don't use that food source up by making ethanol out of it. Something near 90% of the original food value is still there after making ethanol. I don't believe ethanol is the answer to our problems either but it beats the heck out of printing more money and sending to the middle east in exchange for more crude. What alternative fuel source isn't subsidized by the government? Wind generators are subsidized till they are up. They might run 7 or 8 years and then nobody ca afford to repair them to keep them going. I don't know how many $ our school district spent putting up a wind generator saying how it would pay for itself in so much time. Well the power generated in the first 5 years won't pay for the maintenance cost so far let alone pay back the original investment or any interest on it. I don't believe we will ever have a good answer for our energy needs as long as the government has any input, which probably means we will never have an answer to our energy needs.
------------- http://www.ae-ta.com" rel="nofollow - http://www.ae-ta.com Lena 1935 WC12xxx, Willie 1951 CA6xx Dad bought new, 1954WD45 PS, 1960 D17 NF
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 8:29pm
Charles, what I am saying is that ethanol is not the answer. I agree that we need to stop sending money overseas. We could do that by drilling right here at home for oil, but that isn't going to happen in the current world of politics and political correctness.
I don't know about the 90% of the original food value being retained. I cannot find that number looking around. There is some food value, but it appears to be mostly used in feeds. Depending on the amount and usage possibly the impact can be reduced, but I don't see any data supporting that.
In any event Corn is a staple food crop although people have gotten more health conscious and reduced the food dependence value of corn. As the world population continues to grow over time more people will need food. The fact is that corn is one of the most economical food sources there is right now.
Corn also requires a lot of water. Most farms around here that produce any real amounts of corn are irrigated. With the water supply coming under tighter and tighter regulation the ability to produce an increasing amount of corn will be in question. What will that mean if animals and people rely on corn for food and we also rely on corn as a fuel supplement. I feel very strongly that ethanol production using corn can not be a long term solution.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: ncrc5315
Date Posted: 12 Feb 2011 at 8:42pm
"Ethanol is a loser.It has to be subsidised to get produced."
And you don't think that oil isn't subsidized? The low numbers that I have seen are about 35 billion dollars, and that doesn't include the cost of the military guarding the oil supply, or the lives lost defending that oil supply. Remember, no US service personal has ever died defending an ethanol plant. Also the supply of corn used to feed ethanol plants is a good buffer against a bad crop year. In that case the price goes high enough to take it away from ethanol and re-route it to food.
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Posted By: Gordy
Date Posted: 12 Feb 2011 at 8:45pm
((AND "OIL" ISNT SUBSIDIZED??? COME ON THINK ABOUT IT!!!!!! ))
I think it is the opposite of being subsidized from the drilling leases all the way to the tax at the pump oil pumps huge amount of dollars into the goverment
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Posted By: ncrc5315
Date Posted: 12 Feb 2011 at 8:47pm
Oil, without government subsidies would never work either. It's just that the subsidies have been going on for so long, that nobody thinks about them.
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Posted By: Sandknob
Date Posted: 12 Feb 2011 at 9:16pm
Rogers,
I call bull ont he 34%. Those numbers have been thrown out for years as well as the "takes more input than you get out" bull!!!! That was skewed data when it came out years ago and is no better now. I at one point had a 99 Ford Ranger flex fuel that I drove daily. We took good mileage measurements with both gasoline and ethanol and with gasoline I could easily get 15-16 mpg with ethanol I could easily get 14-15 mpg so don't give me that crap. We made absolutely no changes to the truck it was factory. I also had an 84 Dodge Ram D150 that I built an engine for. It had a 360 that was designed to be used with either ethanol or gas. It would run fine on either and got about the same mileage either way. I quit driving it due to transmission problems (later sold it, really wish I still had it). I did have problems occasionally with the idle on ethanol because I never got it tuned correctly (when I switched back and forth I had carb adjustments I made - idle, jets, squirters, etc). I got tired of switching and just drove the Ranger on E85 and the Ram on gas. If I were to do it again I would have adapted a fuel injection system off of a 93 and up Ram.
We have a local ethanol plant and most of the farmers that raise livestock around here buy the DDG's from the plant for feed. They say it really makes good feed as it has a lot of protein.
Adam
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Posted By: Sandknob
Date Posted: 12 Feb 2011 at 9:32pm
As far as the internal combustion engine being inefficient. Maybe so, but I don't buy that these little electric jobbys are any better (just a passing fancy in my opinion). Thier power comes from somewhere and I don't just mean the outlet on the wall (have to look beyond that). Anyway get the EPA out of the equation and the internal combustion engine can get a lot more efficient. On the Dodge truck I built I looked over probably 20 different cams and picked one from Mopar. It was a "resto cam" for a 70 340. Well after installing it and originaly running it - I hated it. It had no low end grunt (torque). The power came on after about 2000-2500 rpm or about 35 mph in my truck. I couldn't even squeak a tire, but I could really fly down the highway after it got moving. Anyway I pulled it out and replaced it with a Comp Cams RV style cam (not the smallest, but the next one up from that XE256 if I remember correctly) and mileage improved and power was phenominal. That truck was a different animal after that. Anyway the point of the story is that 340 resto cam turned out to be the factory truck cam for a 360 truck from 70's right up until about 87-88 (maybe even later). I couldn't figure out why Dodge would put such a horrible cam in a truck like that until I got to reading on the internet that they installed that cam to get emmision where the EPA wanted them for that time period. Its no wonder everyone thinks 360's are fuel hogs, with that cam they definately are!
Adam
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Posted By: Rogers
Date Posted: 12 Feb 2011 at 11:54pm
Adam,
The 34% less efficient value attributed to ethanol is well documented, so there is nothing to dispute or call bull about. The flex fuel engines are designed for ultimate efficiency with ethanol gas. The extra gas mileage for ethanol vs gas is comparing apples to oranges. It is a designed feature to deal with what is forced upon the industry.
I had a 1989 Chevrolet truck that got better than 21 miles to the gallon on gasoline and a 2003 that gets less than the stated 18. Why? Well it just does. I never have liked that about the 2003. What relevance does that have? Nothing aside from what is is.
When it comes to the efficiency of the internal combustion engine. It is only about 35% efficient in converting the energy in fuel to mechanical work at the output shaft. The vast majority of energy is dissipated in heat. Then the mechanical output of the engine is put through a torque converter, drive shaft, gears and tires. In the end mechanical efficiency of an automobile is even less than the 35% because of other losses. The overall efficiency is maybe 25%. I don't have documentation right off the bat, but it should be very easy to verify on-line with a little searching. I won't be far off. If anything the actual efficiency may be slightly worse.
When it come to an electric engine the efficiency is around 95% at the shaft with regards to energy put in. That is a fact. I am an electrical engineer, and I can assure you with absolute certainty that is correct. You will have the same losses in the drive shaft, gears and tires. The overall efficiency of an electric car would be somewhere around 80 to 85%.
You mentioned that the electricity has to be generated by saying "you have to look beyond that". I have hope for you can see the truth if you continue by looking at the whole picture. The efficiency in generation of energy is a factor in its use.
We are feed a bunch of energy efficient talk, but when you look at the whole picture not just the parts you are fed you see the entire picture. When it comes to alternative energy we need to be looking at sources that swing the overall pendulum from generation to use. Ethanol can't do that.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: CORLEWFARM
Date Posted: 13 Feb 2011 at 7:08am
just like dave said. the corn for fuel comes from live stock feed not for human consuption and its still avable for livestock after its produced and adds foodvalue
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Posted By: Spud
Date Posted: 13 Feb 2011 at 9:25am
Where can I access an oil subsidy? I work in the oilfield and have never seen a subsidy check. I cannot say that for the ag industry though?
I have been told that oil companies get some tax breaks but fuel is taxed in a big way as well. I guess if a tax break is a subsidy then we are all subsidized to the point that the government does not take all of our income.
Please point me in the direction to go to get these subsidies or would I have to go back to farming to access them again?
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Posted By: Mark(MO)
Date Posted: 13 Feb 2011 at 9:49am
I can't believe all of the negative ethanol comments on this site. I thought most of you lived in the rural U.S. or more approriately grew up or still live on a farm. There hasn't been a single thing that has done more for rural farm economies than ethanol production. Do you remember the days of $1.90 corn, no market, great stockpiles, the PIC program, the farm crisis of the 80's? I am sure many of you lived through all of that. Why on earth are famrers maligning the one economic advancement that has made their profession profitable again. I don't get it. And to the subject of food vs. fuel, field corn is mostly used for livestock feed, ethanol production and the sweetener market. Very little actually goes directly into human food consumption. The sweet corn (food) market is relatively small and contract driven as someone mentioned earlier. And to the subsidy issue, the oil industry recieves way more subsidies than agriculture, but that is never mentioned. There is a great DTN in depth study that looks at that issue. Why are we content to just keep putting foreign oil in our gas tanks? Have you seen the profits at Exxon/Mobil lately? I just don't get it. I am losing faith in our public and more importantly in our farming community. And for the record, I am a crop and livestock producer. I know what it costs to feed cattle $7 corn. I also know what the local ethanol plant has done for my farm's bottom line.
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Posted By: 427435
Date Posted: 13 Feb 2011 at 9:49am
There may be a break-down in communication about ethanol BTU or energy differences.
Pure ethanol has about 2/3 of the BTU's as pure gas. E10 (10% ethanol) has about 3% less energy (not 30-34%) than pure gas. Thus, measuring mpg differences is hard due to the many variable things that affect mpg.
As far as the BTU's required to produce a BTU of ethanol, there's lots of funny number games being played--------especially by the people who dislike ethanol (read big oil). With current processes, one BTU of input will provide 1.3-2.3 BTU's of ethanol. The low number is used by opponents of ethanol and doesn't take into account the value of the distillers grain that is left after the ethanol process. The higher numbers are from the more efficient ethanol plants and takes the value of the distillers grain into account.
Another thing that the opponents of ethanol like to forget about is that much of the input BTU's for ethanol come from coal and natural gas. We have huge supplies of both right in the USA, but neither are useful as vehicle fuels. By using corn, natural gas, and coal (all of which is in good supply in the USA), we can lessen our dependence on oil (and the middle east).
------------- Mark
B10 Allis, 917 Allis, 7116 Simplicity, 7790 Simplicity Diesel, GTH-L Simplicity
Ignorance is curable-----stupidity is not.
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Posted By: Calvin Schmidt
Date Posted: 13 Feb 2011 at 10:06am
I'm an invester in a farmer owned ethanol plant here in Ontario. In two years of production we have retired 70% of our debt. For every tax dollar of subsidy the government gets 3 dollars back in tax revenue so its been a good investment for the government. Corn farmers were tired of having little or no profits so we created a new market for our corn. DDGs are a great source of livestock feed. I'm a little tired of over producing livestock farmers complaining about the price of corn. Do something about it and find a new market for your product like we did. I'm not runnig a charity to produce corn at a loss for the benifit of the livestock farmers. Been there and done that!
------------- Nothing is impossible if it is properly financed
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Posted By: Jim Lindemood
Date Posted: 13 Feb 2011 at 10:07am
As it turns out, this maybe would have been more appropriate on the political section, but it is here now. Yes, ethanol production has been an economical help for farmers and that is good. Just saying that while it probably can be one component to help us as an alternative energy source, but it is not the long term solution itself. We farmers should be glad for what it is doing, but not stake our future in it - remember tobacco. Provided income for lots of folks, still does for some, but did fall from grace.
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Posted By: Mark(MO)
Date Posted: 13 Feb 2011 at 10:07am
Here you go Spud!
http://discussions.agweb.com/showthread.php?10652-DTN-Finds-Oil-Industry-Subsidized-Much-Higher-Than-Ethanol - http://discussions.agweb.com/showthread.php?10652-DTN-Finds-Oil-Industry-Subsidized-Much-Higher-Than-Ethanol
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Posted By: Rogers
Date Posted: 13 Feb 2011 at 10:43am
I was speaking of pure ethanol. Gas now is only 10% ethanol and 90% gasoline. In any event when you mix a less efficient fuel with a more efficient fuel you end up with something less than the efficiency of the best fuel as a general rule.
Ethanol gas is less efficient that is a fact that is not spew from an anti ethanol source it is fact. If someone tells you different they are the ones telling something which is not based in fact. Company's like GM make flex fuel motors which are designed to be more efficient with ethanol blends. That is the result of design not the fuel itself. That said, I remember seeing an article in an engineering magazine over 20 years ago that spoke of a 50 MPG V8 powered by gas built by GM. The engine had fuel efficiency and turned more HP than anything GM had. It was not in production because it would add several thousand dollars to the cost of a vehicle.
I would like to see a link that tells about the food value still being there after ethanol production. Like I said earlier if that is true it sure isn't an easy item to find. That makes it suspect to me. I would also be suspect if all things that speak of retained fuel value go back to the same article.
This post should have really been on the political forum because it is mostly an issue driven by political forces. Anyway I've been told its lunch time. LOL..
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: Nathan (SD)
Date Posted: 13 Feb 2011 at 11:31am
When I am at the gas pump I can decide if my money goes to corn growing americans or sand packing foreign countries, not a hard choice for me.
As far as the susidies. I myself think they should be lowered. But the fact is the gov is spending that money in our own country for something that benefits the whole country.
Do I think ethanol is the answer to all our problems? No. But it is a step in the right direction that hopefully can lead to bigger steps.
Personally I spend way more money on gas every month than I do food, so I am more interested in the energy value of corn.
Note: these are my opinions, your opinion may vary
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Posted By: 427435
Date Posted: 13 Feb 2011 at 12:28pm
Rogers wrote:
I would like to see a link that tells about the food value still being there after ethanol production. Like I said earlier if that is true it sure isn't an easy item to find. That makes it suspect to me. I would also be suspect if all things that speak of retained fuel value go back to the same article.
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Just do a search on the price of dried distillers grain. It sells by the ton and is worth between 50-65% of the price of corn before it goes into the distilling process. If there wasn't feed value in it, feeders wouldn't be paying that much for it.
------------- Mark
B10 Allis, 917 Allis, 7116 Simplicity, 7790 Simplicity Diesel, GTH-L Simplicity
Ignorance is curable-----stupidity is not.
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Posted By: ILGLEANER
Date Posted: 13 Feb 2011 at 12:31pm
Sounds like alot of people are misinformed on the issue.
Comparing 100% makes no sense,no one is using it so there is no debate.
Oil is subsidized by the government just like ethanol.
Ethanol uses alot of water to produce. Oil uses just about the same amount of water per gallon.
You are not taking away from food when you use oil,your making towel heads in the middle east rich.
You are not taking very little from the food chain when using ethonal. DDG has more protien then corn ,after the process. Therefore you have less product with a higher feed value. You dont really loose much getting ethanol.
I think it is real easy. YOu can support the american farmer,or the middle eastern towel head.
I am a little biased.
IG
------------- Education doesn't make you smart, it makes you educated.
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Posted By: JohnCO
Date Posted: 13 Feb 2011 at 1:20pm
My neighbor put his name in at the local ethanol plant a couple years ago, he finally got on the list a few months ago. He gets one semi load a week. Has to be at the plant at a certain time on Saturday morning or he looses out for the week. As many have already said, ethanol is not the final answer but it is a step in the right direction. As for GM's 50 MPG V8, if it was practical, I suspect the cost would be lowered by high production numbers, thing is, they don't build very many V8's anymore, probably less then 25% of GM production is gas V8's
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant
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Posted By: CTuckerNWIL
Date Posted: 13 Feb 2011 at 2:43pm
"Company's like GM make flex fuel motors which are designed to be more
efficient with ethanol blends. That is the result of design not the fuel
itself." The auto industry has yet to build a production engine designed to run on ethanol. If it did, the efficiency would definitely increase. Flex fuel engines have to be able to burn gasoline and don't have the compression ratios needed to efficiently burn ethanol. They never will build an ethanol engine as long as Big Oil has hold of the EAR of our government or should I say hand in the pocket of our government. Ethanol is produced by extracting the starch from corn and converting it to alcohol. As far as I know, you can't live long on eating starch. It might help gravy stick to your ribs but is basically only carbohydrate. The left over distillers grain is a high fiber high protein by product perfectly suited to the livestock producer. Ethanol- no protein was used in the making of this product. Read this article. http://www.allaboutfeed.net/article-database/shedding-light-in-the-corn-for-fuel-or-food-debate-id1455.html - http://www.allaboutfeed.net/article-database/shedding-light-in-the-corn-for-fuel-or-food-debate-id1455.html "Dr. Terry Klopfenstein, an animal nutrition expert at the University of
Nebraska, has concluded that the energy value of DDG when fed to cattle
is as much as 145% of the original corn. He contends this feed credit
needs to be calculated when determining the overall demand for corn for
ethanol production."
------------- http://www.ae-ta.com" rel="nofollow - http://www.ae-ta.com Lena 1935 WC12xxx, Willie 1951 CA6xx Dad bought new, 1954WD45 PS, 1960 D17 NF
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Posted By: DMiller
Date Posted: 13 Feb 2011 at 4:05pm
Nukes have never been subsidized no matter the hype been put out on it, coal either save for the current carbon sequestering system plants the Fed has to make work or fail miserably in the eyes of the other Kyoto Protocol countries.
I work in a Nuke, My company paid 2.3 BILLION in 1978 dollars to build it now we pay for any and all repairs to it along with any changes in regs the Fed system puts out to us. Security is a joke as to spending millions to protect from???????????? terror? they aren't sure; we spend millions more on mods the NRC comes up with whether they are proven or work or not either and we are stuck with the costs to do it regardless.
Hydro hasn't been done in the US since the 70's and that was at a price of ethics for many in the Fed organizations. Wind is fruitless unless in hugemongous scale of numbers of units, solar is a whim and when the people that buy them figure it out they are going to be really mad at the sales pitch boys.
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Posted By: DMiller
Date Posted: 13 Feb 2011 at 4:08pm
CTuckerNWIL wrote:
"Company's like GM make flex fuel motors which are designed to be more
efficient with ethanol blends. That is the result of design not the fuel
itself." The auto industry has yet to build a production engine designed to run on ethanol. If it did, the efficiency would definitely increase. Flex fuel engines have to be able to burn gasoline and don't have the compression ratios needed to efficiently burn ethanol. They never will build an ethanol engine as long as Big Oil has hold of the EAR of our government or should I say hand in the pocket of our government. Ethanol is produced by extracting the starch from corn and converting it to alcohol. As far as I know, you can't live long on eating starch. It might help gravy stick to your ribs but is basically only carbohydrate. The left over distillers grain is a high fiber high protein by product perfectly suited to the livestock producer. Ethanol- no protein was used in the making of this product. Read this article. http://www.allaboutfeed.net/article-database/shedding-light-in-the-corn-for-fuel-or-food-debate-id1455.html - http://www.allaboutfeed.net/article-database/shedding-light-in-the-corn-for-fuel-or-food-debate-id1455.html "Dr. Terry Klopfenstein, an animal nutrition expert at the University of
Nebraska, has concluded that the energy value of DDG when fed to cattle
is as much as 145% of the original corn. He contends this feed credit
needs to be calculated when determining the overall demand for corn for
ethanol production."
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I have a GM "FlexFuel Chevy, gets 19-21 on ethanol 26 on a good day on regular and 27 on mid grade, the math figures to me burning the same amount of actual gasoline on either regular or ethanol blend.
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Posted By: ncrc5315
Date Posted: 13 Feb 2011 at 4:59pm
NASCAR will be running E15 this year, and what their test have shown, is they get more horsepower, with the same milage. DOT studies have shown that blends in the 20% to 40% range actually gave better milage then straight gasoline or E10.
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Posted By: ncrc5315
Date Posted: 13 Feb 2011 at 5:08pm
Here's an idea, let's get rid of the tax breaks for ethanol, and oil. Then let's move the cost of ALL the associated military expenses for support of protecting the foreign oil supply from the general federal budget to the cost of gas, then let the consumer decide at the pump which one they want to support.
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Posted By: CTuckerNWIL
Date Posted: 13 Feb 2011 at 5:20pm
"I have a GM "FlexFuel Chevy, gets 19-21 on ethanol 26 on a good day on regular and 27 on mid grade, the math figures to me burning the same amount of actual gasoline on either regular or ethanol blend."
Are you talking E85 or the 10% blend that everybody uses? I was just saying, I believe there is more that can be done to increase the efficiency of an alcohol burning engine. Right now car manufacturers have to build something that will burn gasoline because it is out there in the pumps and E85 may not be available everywhere. If they built an engine to be most efficient on E85 or better, it may not and probably wouldn't run worth a hoot on gasoline.
------------- http://www.ae-ta.com" rel="nofollow - http://www.ae-ta.com Lena 1935 WC12xxx, Willie 1951 CA6xx Dad bought new, 1954WD45 PS, 1960 D17 NF
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Posted By: Lonn
Date Posted: 13 Feb 2011 at 5:21pm
We cut cereal out a couple years ago but not because corn was too high but a box of corn flakes is too high and it isn't too healthy either. Also we don't buy hot dogs or use fluoride toothpaste. Pop, both regular and diet, is another cut we are in the process of making although that one must be addictive cause it's turned out to be very difficult to stop drinking. Sorry, not totally on topic.
------------- -- --- .... .- -- -- .- -.. / .-- .- ... / .- / -- ..- .-. -.. . .-. .. -. --. / -.-. .... .. .-.. -.. / .-. .- .--. .. ... - Wink I am a Russian Bot
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Posted By: CTuckerNWIL
Date Posted: 13 Feb 2011 at 5:31pm
Tell me it isn't so Lonn. No Hot Dogs? My gosh, next thing you know, you'll be wanting to cut out Apple Pie. What's next? The Stars and Stripes. LOL Cutting out the diet pop might be the best thing this whole country could do for itself.
------------- http://www.ae-ta.com" rel="nofollow - http://www.ae-ta.com Lena 1935 WC12xxx, Willie 1951 CA6xx Dad bought new, 1954WD45 PS, 1960 D17 NF
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Posted By: Gerald J.
Date Posted: 13 Feb 2011 at 5:51pm
Besides the DDGs the corn oil is still available after using the starch to make sugar and then ethanol.
Gerald J.
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Posted By: Spud
Date Posted: 13 Feb 2011 at 7:27pm
Calvin Schmidt. You did not find a market for your corn. You lobbied the government to force people to buy it. You should have stopped over producing corn just like you say the livestock farmers should stop over producing.
Finding a market means offering something of value and letting people buy it based on it's merits perceived or otherwise.
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Posted By: Spud
Date Posted: 13 Feb 2011 at 7:31pm
Mark, the DTN Ethanol lobby thinks ethanol is a better idea? I didn't see that one coming.
How about something unbiased.
I still did not see any subsidies in there. Just tax breaks. I have never heard of the government forcing people to buy oil, unlike ethanol.
Let's all be honest here. Ethanol is a sham to buy farm votes. You can try to defend it all you want but we all know the truth.
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Posted By: Lonn
Date Posted: 13 Feb 2011 at 7:32pm
CTuckerNWIL wrote:
Tell me it isn't so Lonn. No Hot Dogs? My gosh, next thing you know, you'll be wanting to cut out Apple Pie. What's next? The Stars and Stripes. LOL Cutting out the diet pop might be the best thing this whole country could do for itself.
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Yep, hotdogs and now after a year or so without them I tried one and I could hardly eat it.
------------- -- --- .... .- -- -- .- -.. / .-- .- ... / .- / -- ..- .-. -.. . .-. .. -. --. / -.-. .... .. .-.. -.. / .-. .- .--. .. ... - Wink I am a Russian Bot
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Posted By: AllisFreak MN
Date Posted: 13 Feb 2011 at 8:09pm
Spud, you talk about being unbiased, how can you be unbiased when you work for the oil industry?
------------- '49 A-C WD, '51 A-C WD, '63 A-C D17 Series III, 1968 A-C One-Seventy, '82 A-C 6060, '75 A-C 7040, A-C #3 sickle mower, 2 A-C 701 wagons, '78 Gleaner M2
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Posted By: Rogers
Date Posted: 13 Feb 2011 at 8:51pm
SLOW DOWN!
I think it is safe to say that practically no one who visits this site wants to see middle eastern oil cartels get rich. I personally don't, and I doubt that very many from the US, Canada, or Australia do either. Such talk is absolutely not necessary. I'll end this post here because is really isn't on topic. It is just a statement of something virtually everyone here can agree on.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: Rogers
Date Posted: 13 Feb 2011 at 9:20pm
This post brought up ethanol. I simply think it is not the best alternative energy source, and we should be focusing on something else.
I will simply say it is not really the most important issue to begin with whether ethanol has the energy of gas. Right now 10 to 15% ethanol is blended into gasoline. That means that we are still purchasing 85 to 90 percent of the oil used for gasoline production. I will grant that is a reduction, but it is not ending our dependence on foreign oil. If ethanol is taken up as a way to reduce dependence on foreign oil it will ultimately lengthen the time we are dependent on foreign oil. That is my real problem with ethanol.
Sound stupid? Well think about it. If we begin to produce ethanol it will create another industry which will fight for its existence. We will grow our energy consumption, and even with ethanol we will grow our dependence on foreign oil.
On top of that money will rule. It is human nature right or wrong to go after the money. Right now there is x amount of corn grown for food, and y amount grown for other purposes. If there is more money to be made in the y than the x farmers will grow the y corn. That will force up the price of the x when the supply decrease. Some farmers will then grow x corn, but the prices will have gone up to make the decision take place. It is simple economics, and it will happen no matter what paper expert says otherwise.
I don't know to what extent it will happen, but I have 0% doubt that regardless of the food value for feed in ethanol corn a reliance on ethanol will drive up the cost of food corn. On a side note which is just more economics as farmers produce more y corn for fuel there will become more and more feed grade corn which will drop the price received once the ethanol is produced. Anyway, I do see the whole picture. I simply do not believe that ethanol will prove to be a solution. It will make some wealthy though, and I don't see any reason why a farmer shouldn't go after that which makes him more money.
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: ncrc5315
Date Posted: 14 Feb 2011 at 3:06am
Ethanol doesn't receive a subsidy either, only tax breaks. And let's not forget why ethanol was mandated. When the oil companies were required to oxygenate gasoline, their solution was MTBE, which the OIL companies forced us to buy. MTBE is nothing but poison, (see section 112b of the clean air act amendment of 1990) which the oil companies now want immunity from liability of the estimated 30 billion dollars it's going to take to clean up the contaminated ground water. That's a sham the oil companies forced on the american people. Let me ask you this, given the choice would the oil companies even allow me the opportunity to buy ethanol?
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Posted By: michaelwis
Date Posted: 14 Feb 2011 at 4:17pm
Mark(MO) wrote:
I can't believe all of the negative ethanol comments on this site. I thought most of you lived in the rural U.S. or more approriately grew up or still live on a farm. There hasn't been a single thing that has done more for rural farm economies than ethanol production. Do you remember the days of $1.90 corn, no market, great stockpiles, the PIC program, the farm crisis of the 80's? I am sure many of you lived through all of that. Why on earth are famrers maligning the one economic advancement that has made their profession profitable again. I don't get it. And to the subject of food vs. fuel, field corn is mostly used for livestock feed, ethanol production and the sweetener market. Very little actually goes directly into human food consumption. The sweet corn (food) market is relatively small and contract driven as someone mentioned earlier. And to the subsidy issue, the oil industry recieves way more subsidies than agriculture, but that is never mentioned. There is a great DTN in depth study that looks at that issue. Why are we content to just keep putting foreign oil in our gas tanks? Have you seen the profits at Exxon/Mobil lately? I just don't get it. I am losing faith in our public and more importantly in our farming community. And for the record, I am a crop and livestock producer. I know what it costs to feed cattle $7 corn. I also know what the local ethanol plant has done for my farm's bottom line.
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Exactly my thoughts .. rural people on an AC website .. i would think most of you would be happy that American farmers are making a buck .. instead of fighting two wars and looasing their sons and daughters in the process .. and the money to do it ..
Oh thats right .. first time that two wars were fought ..and the bill got slipped in your kids and grandkids pockets ....
------------- WD WD45 DIESEL D 14 D-15 SERIES 2 190XT TERRA TIGER ac allcrop 60 GLEANER F 6060 7040.and attachments for all Proud to be an active farmer
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Posted By: Denis in MI
Date Posted: 14 Feb 2011 at 5:23pm
¢I saw today that corn was at $7.17 a bushell
just thought I would add my .02¢,
Denis
------------- 1938 B, 1945 B, 1941 IB, 1949 C, 2 1938 WCs, 3 1950 WDs, 1951 WD, 2 1955 WD45, 1957 D-14
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Posted By: LouSWPA
Date Posted: 14 Feb 2011 at 5:36pm
Guys,
I'm taking the liberty of jumping this over to political page. You can follow me over there....or continue here. I'm sure the origional post was not ment to be political, but it has become so, so in respect to Darin's wishes I think we need to move
------------- I am still confident of this; I will see the goodness of the Lord in the land of the living. Wait for the Lord; be strong and take heart and wait for the Lord. Ps 27
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Posted By: Rogers
Date Posted: 14 Feb 2011 at 5:42pm
Lou, I agree. I said before this post should have been on the political forum.
Thanks,
------------- Think for yourself and be your own expert. Be willing to change your mind; however, willingness to change your mind doesn’t mean that you will. Blindly following any path is the pinnacle of insanity.
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Posted By: michaelwis
Date Posted: 14 Feb 2011 at 5:46pm
Denis in MI wrote:
¢I saw today that corn was at $7.17 a bushell
just thought I would add my .02¢,
Denis |
Great .. bring it on.....
------------- WD WD45 DIESEL D 14 D-15 SERIES 2 190XT TERRA TIGER ac allcrop 60 GLEANER F 6060 7040.and attachments for all Proud to be an active farmer
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Posted By: Larry B
Date Posted: 14 Feb 2011 at 5:49pm
That 7.17 is the trader price on the boaed not the cash price.Alot of the people on this sight think that it's the farmers fault that food is the price it is but that isn't true. Do you remember in 2008 when corn went up and food did too ? But when corn dropped back to the 2.50-3.00 range the food didn' change, stayed up now they will raise the food prices again, Tell me who is making the money on that one. The problem as i see it is we farmers were subsidising consumers for years with cheap corn and livestock and now they have to pay up and don't like it.
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Posted By: Coke-in-MN
Date Posted: 14 Feb 2011 at 5:56pm
Lets take it to the POLITICAL SECTION
------------- Faith isn't a jump in the dark. It is a walk in the light. Faith is not guessing; it is knowing something. "Challenges are what make life interesting; overcoming them is what makes life meaningful."
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Posted By: Spud
Date Posted: 17 Feb 2011 at 8:43pm
Allis Freak. You are right that I am biased. I have three kids 1, 4, and 5 years of age that will bear a heavy tax burden for their whole life so you can make bank now.
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