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•Your body cannot tell the difference between sugar and high fructose corn syrup made from corn, nor is one “healthier” for you than the other.
ha ha... I like how we feed corn to cows too.Oh my goodness.
Some info from one of my Micro Econ books.
*Congressional mandate for 9 billion gallons of ethanol to be blended into gasoline in the US in 2008.
*A 51 cent federal government subsidy to US oil refiners for every gallon of ethanol blended with gasoline; and the signing into law in 2007 by Pres. GWB of an energy bill to increase US production of renewable motor fuels, such as ethanol, fivefold to 36 billion gallons by 2022.
That will equal about 18.36 billion in subsidies per year to oil refiners.
*Demand for corn by food and biofuel industries pushed the price of grain from about $2 to $3 a bushel, to an 11 year high of $5 per bushel by early 2008.
The price increase came despite a record 13 billion bushel corn crop in 2007.
24 percent of which went to ethanol production (up from 14% in 2005).
*Economic models predict zero economic profits made by the various producers as the prices of inputs, such as farmland, get bid up to reflect the opportunity costs.
*The original owners of inputs whose prices are bid up do recieve a permanent gain, provided that corn is an increasing cost industry.
*The average price of Iowa farm land has increased by 57% between 2002 and 2007. And another 20% between 2007 and 2008 (from $4200 up to $5,000 per acre).
Some interesting points.
Many arguable points though too.
Keep in mind that every article, study or publication etc is written with a point of view.
With that point of view, one can sift through the facts, keeping the facts that support the point of view while discarding the facts that contradict the point of view.
The question at hand....Should we end ethanol (or all farm subsidies)?
Sure, if we can guarantee a truly free market without govt manipulation.
If we do that, let's also stop all subsidies to anyone & everyone,foreign aid, welfare, medicare along with all wasteful govt spending.
As far as farm subsidies go. Unfortunately, if we stop all farm subsidies we as consumers may not like where the new prices, (market equilibrium) lands.
That would seem to suggest this is a unsustainable goverment subsidized nightmare! Cuz If I do the math and 9 billion gallons was 24 % of a good crop year then the 36 billion will be 96% of the entire crop. There may be a problem with that.