Posted by sws55 on March 06, 2011 at 08:42:00 from (173.29.40.52):
In Reply to: End of ethanol.... posted by muckfarmer on March 06, 2011 at 02:47:08:
Ethanol subsidies were established back when corn was close to $2, US farmers were struggling. The US dollar was high and there wasn't as much export demand for US grain. Oil was $16 to $24 a barrel. At that time using cheap grain to make ethanol and to help a struggling industry (agriculture) made sense.
Times have changed. Now The US dollar is low. There is a strong export demand for US grain. Corn is now $6. Agriculture has recovered and is now one of the strongest and most profitable industries in the country compared to everyone else in the country.
Oil is $100 a barrel and rising. The price of corn has increased 200% to 300% since subsidies were established, but oil has incresed 400% to 600% in the same time. The ethanol industry should be able to stay profitable on it's own now. So it will continue to consume corn and help push corn prices higher.
Yes, dropping the subsidies will hurt the ethanol industry a little, but it isn't needed anymore. With the strong export market a farmer won't notice much difference.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - George's Fordson Major - by Anthony West (UK). This is a bit of a technical info to add on to the article about George's Major in the "A Towny Goes Plowing" article. George bought his Major from a an implement sale about 18 years ago for £200.00. There is no known history regarding its origins or what service it had done, but the following work was undertaken by Harold alone to bring it up to show standard. From the engine number, it was found that the major was produced late 19
... [Read Article]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
