Perhaps the most honest and thorough analysis of the effect of ethanol on farm income and taxpayers and consumers was done by the USDA's Office of Energy in 1986. That study, which included a lower estimate of the inflationary impact of ethanol production on corn prices, concluded,Since this report is looking at the money, they aren't following the Thermodynamics. A hint -- it takes more caloric energy to make a gallon of Ethanol than you can recover from the Ethanol. Making Ethanol is an Energy Sink not a Source...Corn prices would increase by $0.02-$0.04 per bushel for each 100 million bushel increase in ethanol-induced demand for corn. However, soybean prices would fall by about $0.04 per bushel and soybean prices would fall by $0.12-$0.15 per hundredweight.The study concluded that increased production of ethanol would cost consumers and taxpayers roughly $4 for each $1 of extra farm income.
Higher corn prices from additional ethanol- induced demand would increase the cost of producing beef, pork, and poultry. Consumer food expenditures would rise by $8.6 billion, or an average of $2.29 for each additional gallon of ethanol produced.
When all the costs and benefits are tallied, the Government, taxpayers and consumers together would lose $6.1-$7.2 billion or $1.61-$1.92 per additional gallon produced during the 1986-94 period if ethanol subsidies were increased enough to prompt the ethanol industry to produce 2 billion gallons in 1995. Conversely, if ethanol production falls to zero, they would save some $6.8-$8.9 billion, or $1.35-$1.76 per gallon not produced.(49)
The report stated,Increases in consumer food expenditures caused by additional ethanol production far exceed the increases in farm income. Consumers would be much better off if they burned straight gasoline in their automobiles and paid a direct cash subsidy to farmers in the amount that net farm income would be increased by ethanol production.(50)
Archer Daniels Midland and Ethanol
Categories:
2 Comments
Search
October 2022
Environment and Climate
AccuWeather
Cliff Mass Weather Blog
Climate Depot
Ice Age Now
ICECAP
Jennifer Marohasy
Solar Cycle 24
Space Weather
Watts Up With That?
Science and Medicine
Junk Science
Life in the Fast Lane
Luboš Motl
Medgadget
Next Big Future
PhysOrg.com
Geek Stuff
Ars Technica
Boing Boing
Don Lancaster's Guru's Lair
Evil Mad Scientist Laboratories
FAIL Blog
Hack a Day
Kevin Kelly - Cool Tools
Neatorama
Slashdot: News for nerds
The Register
The Daily WTF
Comics
Achewood
The Argyle Sweater
Chip Bok
Broadside Cartoons
Day by Day
Dilbert
Medium Large
Michael Ramirez
Prickly City
Tundra
User Friendly
Vexarr
What The Duck
Wondermark
xkcd
NO WAI! WTF?¿?¿
Awkward Family Photos
Cake Wrecks
Not Always Right
Sober in a Nightclub
You Drive What?
Business and Economics
The Austrian Economists
Carpe Diem
Coyote Blog
Photography and Art
Digital Photography Review
DIYPhotography
James Gurney
Joe McNally's Blog
PetaPixel
photo.net
Shorpy
Strobist
The Online Photographer
Blogrolling
A Western Heart
AMCGLTD.COM
American Digest
The AnarchAngel
Anti-Idiotarian Rottweiler
Babalu Blog
Belmont Club
Bayou Renaissance Man
Classical Values
Cobb
Cold Fury
David Limbaugh
Defense Technology
Doug Ross @ Journal
Grouchy Old Cripple
Instapundit
iowahawk
Irons in the Fire
James Lileks
Lowering the Bar
Maggie's Farm
Marginal Revolution
Michael J. Totten
Mostly Cajun
Neanderpundit
neo-neocon
Power Line
ProfessorBainbridge.com
Questions and Observations
Rachel Lucas
Roger L. Simon
Samizdata.net
Sense of Events
Sound Politics
The Strata-Sphere
The Smallest Minority
The Volokh Conspiracy
Tim Blair
Velociworld
Weasel Zippers
WILLisms.com
Wizbang
Gone but not Forgotten...
A Coyote at the Dog Show
Bad Eagle
Steven DenBeste
democrats give conservatives indigestion
Allah
BigPictureSmallOffice
Cox and Forkum
The Diplomad
Priorities & Frivolities
Gut Rumbles
Mean Mr. Mustard 2.0
MegaPundit
Masamune
Neptunus Lex
Other Side of Kim
Publicola
Ramblings' Journal
Sgt. Stryker
shining full plate and a good broadsword
A Physicist's Perspective
The Daily Demarche
Wayne's Online Newsletter
About this Entry
This page contains a single entry by DaveH published on May 29, 2005 2:58 PM.
Surplus Stuff was the previous entry in this blog.
the French is the next entry in this blog.
Find recent content on the main index or look in the archives to find all content.
Categories
- Add category
- Administrivia (9041)
- Anti Environmentalism (53)
- Asshats (894)
- Business (345)
- Climate (1164)
- Critters (157)
- Culture (2009)
- Economics (311)
- Electronics (23)
- Energy (298)
- Environmental (1051)
- Faith (97)
- Farming (250)
- Food (205)
- Geekdom (3936)
- Guns (423)
- Humor (335)
- Interregnum (5)
- Islamofacism (1017)
- Law Enforcement (327)
- Leviathan (6708)
- Local Events (703)
- Media (53)
- Medical Technology (101)
- Medicine and Health (744)
- Middle East (444)
- Military (199)
- Music (341)
- Other... (4062)
- Photography (224)
- Politics (3408)
- Science (1875)
- Seattle (29)
- Tech (48)
- United Nations (43)
- Web Design (15)
- Weblogs (53)
Monthly Archives
- October 2022 (43)
- September 2022 (130)
- August 2022 (90)
- July 2022 (138)
- June 2022 (131)
- May 2022 (170)
- April 2022 (198)
- March 2022 (159)
- February 2022 (176)
- January 2022 (207)
- December 2021 (239)
- November 2021 (205)
- October 2021 (268)
- September 2021 (266)
- August 2021 (355)
- July 2021 (296)
- June 2021 (300)
- May 2021 (266)
- April 2021 (244)
- March 2021 (288)
- February 2021 (299)
- January 2021 (308)
- December 2020 (309)
- November 2020 (299)
- October 2020 (246)
- September 2020 (320)
- August 2020 (345)
- July 2020 (378)
- June 2020 (307)
- May 2020 (378)
- April 2020 (388)
- March 2020 (360)
- February 2020 (244)
- January 2020 (225)
- December 2019 (328)
- November 2019 (382)
- October 2019 (388)
- September 2019 (301)
- August 2019 (278)
- July 2019 (222)
- June 2019 (192)
- May 2019 (186)
- April 2019 (267)
- March 2019 (348)
- February 2019 (327)
- January 2019 (262)
- December 2018 (261)
- November 2018 (271)
- October 2018 (180)
- September 2018 (156)
- August 2018 (159)
- July 2018 (140)
- June 2018 (137)
- May 2018 (132)
- April 2018 (119)
- March 2018 (112)
- February 2018 (138)
- January 2018 (191)
- December 2017 (109)
- November 2017 (138)
- October 2017 (144)
- September 2017 (140)
- August 2017 (172)
- July 2017 (258)
- June 2017 (278)
- May 2017 (268)
- April 2017 (274)
- March 2017 (307)
- February 2017 (283)
- January 2017 (359)
- December 2016 (310)
- November 2016 (285)
- October 2016 (262)
- September 2016 (236)
- August 2016 (278)
- July 2016 (291)
- June 2016 (284)
- May 2016 (268)
- April 2016 (268)
- March 2016 (259)
- February 2016 (200)
- January 2016 (206)
- December 2015 (172)
- November 2015 (190)
- October 2015 (183)
- September 2015 (187)
- August 2015 (183)
- July 2015 (203)
- June 2015 (168)
- May 2015 (180)
- April 2015 (137)
- March 2015 (179)
- February 2015 (158)
- January 2015 (160)
- December 2014 (175)
- November 2014 (163)
- October 2014 (193)
- September 2014 (159)
- August 2014 (155)
- July 2014 (174)
- June 2014 (150)
- May 2014 (165)
- April 2014 (183)
- March 2014 (169)
- February 2014 (174)
- January 2014 (207)
- December 2013 (187)
- November 2013 (148)
- October 2013 (176)
- September 2013 (156)
- August 2013 (151)
- July 2013 (162)
- June 2013 (157)
- May 2013 (156)
- April 2013 (158)
- March 2013 (204)
- February 2013 (168)
- January 2013 (192)
- December 2012 (203)
- November 2012 (194)
- October 2012 (200)
- September 2012 (177)
- August 2012 (153)
- July 2012 (148)
- June 2012 (97)
- May 2012 (118)
- April 2012 (96)
- March 2012 (109)
- February 2012 (89)
- January 2012 (87)
- December 2011 (83)
- November 2011 (67)
- October 2011 (49)
- September 2011 (66)
- August 2011 (101)
- July 2011 (96)
- June 2011 (123)
- May 2011 (159)
- April 2011 (153)
- March 2011 (142)
- February 2011 (106)
- January 2011 (149)
- December 2010 (131)
- November 2010 (127)
- October 2010 (131)
- September 2010 (107)
- August 2010 (139)
- July 2010 (132)
- June 2010 (132)
- May 2010 (131)
- April 2010 (164)
- March 2010 (189)
- February 2010 (128)
- January 2010 (159)
- December 2009 (181)
- November 2009 (176)
- October 2009 (141)
- September 2009 (165)
- August 2009 (155)
- July 2009 (161)
- June 2009 (165)
- May 2009 (185)
- April 2009 (188)
- March 2009 (161)
- February 2009 (160)
- January 2009 (175)
- December 2008 (190)
- November 2008 (125)
- October 2008 (160)
- September 2008 (150)
- August 2008 (131)
- July 2008 (104)
- June 2008 (118)
- May 2008 (114)
- April 2008 (155)
- March 2008 (112)
- February 2008 (54)
- January 2008 (122)
- December 2007 (120)
- November 2007 (125)
- October 2007 (62)
- September 2007 (85)
- August 2007 (111)
- July 2007 (100)
- June 2007 (141)
- May 2007 (135)
- April 2007 (107)
- March 2007 (162)
- February 2007 (77)
- January 2007 (98)
- December 2006 (116)
- November 2006 (66)
- October 2006 (72)
- September 2006 (90)
- August 2006 (80)
- July 2006 (45)
- June 2006 (73)
- May 2006 (79)
- April 2006 (111)
- March 2006 (81)
- February 2006 (96)
- January 2006 (173)
- December 2005 (193)
- November 2005 (121)
- October 2005 (121)
- September 2005 (152)
- August 2005 (141)
- July 2005 (139)
- June 2005 (202)
- May 2005 (173)
- April 2005 (124)
- March 2005 (195)
- February 2005 (207)
- January 2005 (224)
- December 2004 (124)
- November 2004 (198)
- October 2004 (186)
- September 2004 (80)
- August 2004 (81)
- July 2004 (25)
- June 2004 (67)
- May 2004 (111)
- April 2004 (225)
- March 2004 (256)
- February 2004 (233)
- January 2004 (314)
- December 2003 (194)
- November 2003 (264)
- October 2003 (34)
It is an energy sink, and the subsidies do suck.
But one gallon of ethanol (roughly 80MJ) is much more convenient for propelling one's car 30 miles than the equivalent output of either solar cells or a nuclear power plant. The only (pseudo) sources available anywhere. (Everything else essentially being a derivative) With 'perfect' solar cells, mid-day, not near Seattle, -> somewhere around 44 square meters of solar cell for a car of the same weight/tires/aerodynamics.
I'm not saying our current methods of _making_ the ethanol are sane, nor am I arguing that we'll be able to 'win', 'break even', or (heck) 'come close' on the efficiency of the conversion of energy. But a GM potato (or something) designed not for food-value, but for ease-of-conversion-to-fuel seems near-inevitable. Trees take far more time to grow, but appear to have a higher energy recovery/energy cost ratio and yield longer chain hydrocarbons....
Otherwise we'll be using nuclear power plants to make fuel at some point - for precisely the reasons you pointed out in the last discussion of how hydrogen doesn't make a lot of sense as a method of storing energy. That is, high energy density liquids are much more convenient than many of our other options.
Senator Bob Dole has been ADM's bitch boy and treasure-spigot since the dawn of petroleum:
http://www.consumeralert.org/fumento/adm.htm
Here's a partial list of the loot ADM kicked back to Dole and his wife in return:
http://www.realchange.org/bdole.htm
ADM is a bunch of pirates, but Dole created that monster...