Is the End in Sight for America’s Biofuel Boondoggle?

[Chris_]

Is the End in Sight for America’s Biofuel Boondoggle?

US farmers have been diverting more and more of their corn crops towards ethanol refineries to satisfy EPA mandates stemming from the 2007 Renewable Fuels Standard. In 2006, before that standard went into place, just 23 percent of America’s corn crop went towards producing ethanol. That number rose to 43 percent last year.

Corn ethanol fails every test a biofuel could hope to pass. It doesn’t lower emissions; it raises them. It also raises the global price of corn, starving the world’s poor and possibly inciting riots. But EPA mandates are propping up this boondoggle. Producers are scrambling to snatch up biofuel credits to meet the federally-mandated quota this year because neither supply nor demand will be sufficient to produce the more than 13 billion barrels of ethanol required.

The bills working their way through Congress will also addresses the ill-conceived mandate for corn ethanol’s big brother: cellulosic ethanol. Cellulosic ethanol is considered an “advanced” biofuel, and it actually passes most of the tests that corn ethanol fails so miserably. But cellulosic ethanol still isn’t ready for mass production: there has been virtually no commercial production of the fuel, despite EPA quotas requiring nearly 20 million gallons since 2010.

The American Interest

[longview]

I'm all for the elimination of subsidized biofuel.  We can't afford it.

But, it is more impersonal than "farmers have been diverting more and more of their corn crops towards ethanol refineries."  Farmer takes his corn to the granary.  He may have someone he deals with.  A broker who gets the best price he can for "x" amount of grain.  Some of all of the farmers corn may go to biofuel, or it may go for human food, or the best price may be in livestock feeds.  Lots of factors determine what it is best for, but in general the corn from several farms goes to one place and ends up all together.

There are also regulations regarding how much of the U.S. harvest can be used for biofuel, or how much can be sold outside the country.  Foriegn countries also have limits and regulations.

I don't know if the author was ignorant of all that goes into selling a product like corn, or if the author is consciously wanting to portray farmers as greedy and uncaring.

Do farmers like that corn prices are very high compared to some years in the recent past?  You bet.  What business person wouldn't?  Do they like that it is falsely supported by some silly government program?  Most that I know care and don't like it and are saving and planning for when it ends, a few don't care and consider "the government" some not-quite-real entity that doesn't really affect them, and one says he really, really believes that biofuels are the answer to everything.  

[thundley4]

I'm all for the elimination of subsidized biofuel.  We can't afford it.

But, it is more impersonal than "farmers have been diverting more and more of their corn crops towards ethanol refineries."  Farmer takes his corn to the granary.  He may have someone he deals with.  A broker who gets the best price he can for "x" amount of grain.  Some of all of the farmers corn may go to biofuel, or it may go for human food, or the best price may be in livestock feeds.  Lots of factors determine what it is best for, but in general the corn from several farms goes to one place and ends up all together.

There are also regulations regarding how much of the U.S. harvest can be used for biofuel, or how much can be sold outside the country.  Foriegn countries also have limits and regulations.

I don't know if the author was innorant of all that goes into selling a product like corn, or if the author is consciously wanting to portray farmers as greedy and uncaring.

Do farmers like that corn prices are very high compared to some years in the recent past?  You bet.  What business person wouldn't?  Do they like that it is falsely supported by some silly government program?  Most that I know care and don't like it and are saving and planning for when it ends, a few don't care and consider "the government" some not-quite-real entity that doesn't really affect them, and one says he really, really believes that biofuels are the answer to everything.   

Never fear.  Obama is going to do his part to lower the prices that farmers get paid.  His new budget calls for buying food locally in foreign countries instead of fro US farmers as part of his foreign aid plan.