Three times more U.S. corn used for ethanol than to feed people
Ethanol is a type of vehicle fuel made from corn. As I posted a few weeks ago, a few of the corporate giants in the corn business have teamed with the "green" movement to get congress to create a huge subsidy for ethanol production. Result?
So, three-and-a-half times more U.S. corn is used for motor fuel than is used to feed people.
Congressmen of both parties are putting on a show of reducing subsidies for ethanol, but so far the proposals being considered would actually increase taxpayer support for ethanol. Typical of our corrupt congress.
We should all love the American farmer--they're the hardest-working folks in the country, and their efforts and expertise enable the rest of us to do something other than spend our entire lives trying to raise food. And obviously, high demand for corn--as for anything--keeps prices high. So while subsidizing the use of corn to make ethanol is raising food prices world-wide and costing taxpayers a bundle, it would be a mistake to stop subsidies instantly. Instead, I think they should be phased out over a fairly long period, say six to eight years.
Again, I don't think farmers should suffer if we end a web of subsidies that virtually none of 'em had anything to do with creating. Hopefully spreading the phase-out over several years will only reduce corn use for ethanol by a few percent each year, without significantly cutting world-wide demand--thus minimizing the hit to farm income.
The huge ethanol subsidy is yet one more example of how allowing government to subsidize *anything* distorts the market, and almost always sets up a situation where people will pay a price later to get rid of the subsidy system.
The Agriculture Department last week estimated that this year, for the first time ever, America will use more corn [to make] ethanol than for any other purpose.The USDA estimates that in the current corn "marketing year" (September 2010 through 31 August 2011), 12.1 percent of all U.S. corn will be used for human food and seed. Another 43.7 percent will be fed to farm animals. But for the first time, the largest chunk--44.2 percent--will be used to make ethanol.
So, three-and-a-half times more U.S. corn is used for motor fuel than is used to feed people.
Congressmen of both parties are putting on a show of reducing subsidies for ethanol, but so far the proposals being considered would actually increase taxpayer support for ethanol. Typical of our corrupt congress.
We should all love the American farmer--they're the hardest-working folks in the country, and their efforts and expertise enable the rest of us to do something other than spend our entire lives trying to raise food. And obviously, high demand for corn--as for anything--keeps prices high. So while subsidizing the use of corn to make ethanol is raising food prices world-wide and costing taxpayers a bundle, it would be a mistake to stop subsidies instantly. Instead, I think they should be phased out over a fairly long period, say six to eight years.
Again, I don't think farmers should suffer if we end a web of subsidies that virtually none of 'em had anything to do with creating. Hopefully spreading the phase-out over several years will only reduce corn use for ethanol by a few percent each year, without significantly cutting world-wide demand--thus minimizing the hit to farm income.
The huge ethanol subsidy is yet one more example of how allowing government to subsidize *anything* distorts the market, and almost always sets up a situation where people will pay a price later to get rid of the subsidy system.
posted by SF at
1:38 PM
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