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Monday, May 19, 2008

Iowa Senator Chuck Grassley Is Defending Ethanol

By Rob on May 19, 2008 at 02:40 pm
10 Comments

By inadvertently pointing out that farmers have a 19% gross profit margin in addition to all the subsidies (via email).

WASHINGTON — Senator Chuck Grassley today encouraged Iowans who work for major food manufacturers to make their voices heard in opposition to a national smear campaign against ethanol.

“A national association employing high-priced Washington, DC, spin doctors has launched a misleading and disingenuous assault on ethanol,” Grassley said. “The facts are that biofuels are a very small factor in rising grocery costs and just 19 cents of every food dollar spent by consumers goes to farmers. I’m calling on companies who are members of the Grocery Manufacturers Association to protest the trade association’s target and tactics. Every employee of these member companies can join in. We’ve got to speak truth to power and fight back against this smear campaign.”

Personally, I wouldn’t care if every single car in this country ran on ethanol.  I’ve got nothing against the fuel itself.  But what drives me nuts is the insistence by people like Senator Grassley that ethanol is the future, and if we don’t subsidize/mandate it endlessly we’re going to be in trouble.

As far as I’m concerned, if ethanol can’t sustain itself in an open energy market without subsidies then it isn’t the right fuel for America.  Period.  And while I’m willing to listen to arguments about ethanol’s limited role in food prices, I find them unconvincing.  Fuel crops are diverting food away from grocery markets and using up land that could be used for food crops.  The mandates and subsidies for ethanol have made the market inflexible, and that’s hurting everybody.

Comments

Avatar for Zsa Zsa

It is one thing to defend it. Quite another to force the American tax payers to subsidize it…

Zsa Zsa on May 19, 2008 at 04:23 pm
Bat One

19% margin, huh?  Why that’s a higher profit margin than Exxon/Mobil!  And that’s without the subsidy from the taxpayers.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on May 19, 2008 at 04:37 pm
Avatar for brad

I read an article on ‘Ethanol from Saw Grass”.  Is it possible that the current level of subsidy would speed up the R&D on switching from corn base to Saw grass....

brad on May 19, 2008 at 06:31 pm
Kevin

Ethanol is nothing but a government SCAM!

Kevin on May 19, 2008 at 08:15 pm
Avatar for coolarrow

Ethanol is great so long as it isnt made from our food.  How stupid is it to make our food into fuel for our cars and trucks. People starve for food, while we have coal, shale oil, natural gas and oil that we cant use. 
How stupid is that.  USA has untold supplies of natural gas and oil and the land to produce the food to feed the world.  We let people starve cause were going to kill the planet?  We re going to kill the planet?  Says who, algore? Idiots like him? The same idiots that 20 yrs ago said there was global cooling?  Dont get me wrong I know we should keep our earth clean but where is the proof that we cause the warming thing.  I think we have alot of people setting around feeling guilty cause they contribute nothing. They have no other purpose in life but to displace that guilt on to others that are actually doing something creative and productive with there life.

coolarrow on May 19, 2008 at 11:18 pm
electnixon

By inadvertently pointing out that farmers have a 19% gross profit margin in addition to all the subsidies (via email).

19% margin, huh?  Why that’s a higher profit margin than Exxon/Mobil!  And that’s without the subsidy from the taxpayers.

Give me a break, You guys are both smarter than this.

Gross profit is calculated by taking revenue minus direct cost.  Overhead is then subtracted to get net profit (which is negative in many years for a lot of farmers).

The 19 cents is the farmer’s share of the revenue and says nothing about either gross or net profit unless directs costs and overhead are known.

electnixon on May 20, 2008 at 05:50 am
Avatar for Zsa Zsa

I am all for the farmers making a profit. BUT $750,000 per farmer is ridiculous! Then when you add the farmers wife & sons & daughters… It is just so irresponsible of Congress to strap this on the American tax payers! We REALLY need to clean house!

Zsa Zsa on May 20, 2008 at 06:21 am
The Whistler

I am all for the farmers making a profit.

A subsidy check is not a profit.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

The Whistler's signature
The Whistler on May 20, 2008 at 06:33 am
Avatar for Zsa Zsa

It is a hand out!

Zsa Zsa on May 20, 2008 at 07:09 am
Chief RZ

Zsa Zsa, I agree, and I do not want ethanol in my cars.  The last time we went through this, I went along in the early 1980s.  After 6 months of using, it dissolved components in the carburetor of my Chevette!  It cost over $1,000 to replace all the parts and get it back on the road.  No more.  The other day I noticed a sticker on an Exxon pump-- 10% ethanol.  No more using Exxon gasoline for me.  We must stop this hand out and let the free market determine supply and demand.

Communism is evil

Chief RZ on May 20, 2008 at 08:01 am
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