PAUL ESSINGTON 10/21/2010 @ 2:29pm
once again we worry about cheap and forget that farmers have make a living also. Asking people from the oil industry to comment on this issue is down right silly.
Anthony VR 10/19/2010 @ 10:12pm
I must say I find all the findings of the so called experts rather amusing when they derive the so called true cost of ethanol yet do not factor in the true cost of oil. It is not simply the cost of the oil from the middle east in terms of the direct price of a barrel of oil but rather the true cost that should be considered. The first Gulf war was fought to prevent Iraq from holding Kuwaits oil supply, there is a cost to that. There is also the cost of protecting the oil shipping lanes with American warships, American aircraft, and the lives of Americans. I remember reading a number of years ago before the whole food vs fuel debate erupted that it was costing nearly a $100 a barrel in indirect costs to get that barrel of oil to America. I would imagine that if the military cost is included ethanol appears to be a rather sweet deal.
Goldin's comment that "“I think we should be clear in our minds that this causes people to die of starvation" is full of enough bs to grow a few more bushels of corn in itself. There is a global surplus of crops as we speak, mere months ago it was spoken that we had large stocks of wheat in the world, prices were low, yet people starved, when wheat was $1.50 and corn was $2.00 a number of years ago people starved. Any politician, any CEO, anyone for that matter who will blame ethanol, blame so called greedy farmers, or blame the price of grain for the starvation of individuals in this world, is living in a world where they sit down for supper wearing suits, and rolex's, and smile thinking the masses are ignorant enough to believe what they preach.
This panel is clearly stacked; here are the facts
Chris Thorne 10/19/2010 @ 5:29pm
Let me begin by saying that I represent Growth Energy, the coalition of America's ethanol supporters.
This panel that Dan reports on is clearly stacked, and the distortions it presented have to be addressed.
First, the former World Bank VP seems to have missed the most recent report by the World Bank reversing its position on ‘food-v-fuel.’ Their newest study says the connection is minimal – if it exists at all. You can read that World Bank paper here: http://growthenergy.org/images/reports/WPS5371.pdf
Second, Joe Glauber, an economist with USDA, went through all these claims and easily refuted them, point after point, in testimony before the Congress.
You can read that here:
It is really irresponsible for this panel to throw around words like ‘starvation’ in connection to grain ethanol. The corn used to make ethanol in this country is field corn. In fact, a co-product of ethanol production are the Dried Distiller’s Grains which go right back into the food chain in the form of one of the highest-quality livestock feeds on the market. So where exactly does this take food away from people? How exactly does this starve people? To that point, most of the economists who have looked at this issue found that high OIL prices contributed to higher food prices, and that rampant Wall Street speculation had much more to do with driving up food prices.
Probably the best refutation came from the food companies themselves, when General Mills CFO Dan Mulligan was quoted in the St. Paul Pioneer Press last year, after his company (the top user of grains in the world) posted a record 51 percent profit increase. In that story, Mulligan said that the public “doesn’t understand” how little grains are to their input costs, and amount to “five or ten percent” of his company’s costs. That’s right from their horses mouth, and shoots down the entire food-v-fuel fiction.
You can read more on our blog – including the Glover Park proposal to GMA – on Growth Energy’s blog, here:
Payment Limit Rule in 2015 By: DANIEL LOOKER12/17/2014 @ 4:43pm
USDA rules on who is considered actively engaged in farming and eligible to receive commodity…
Building an ARC By: DANIEL LOOKER12/16/2014 @ 11:16am
When the Agricultural Act of 2014 became law last February, the Farm Bill’s new Agricultural Risk…
Cautiously Bullish? By: DANIEL LOOKER12/15/2014 @ 9:14pm
For many corn and soybean farmers 2015 looks like a money-loser but at least the price trends on…
Get regular updates on ag news, exclusive offers, and special reports