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Ethanol's Unintended Consequences

Jun 14, 2011

John,
Being a retired dairy farmer I might be somewhat biased, but do you not see the unintended consequences of farm state Senators pushing the ethanol program?

1. Yes high grain prices help now but wages are not going up. What will happen to public opinion as they see you get government payments while they cannot afford the food?
2. You are driving up your fixed costs which you can now pay, but what happens when the fertilizer hits the fan?
3. What happens to the farm bill when you all make tremendous profits at the expense of the average American?
4. What are you doing to your primary market? Do you really believe that the poultry, pork, or beef producers will be able to stay in business? I already see sales without buyers.
5. What happens when the people see that ethanol has driven up grain prices? Do you think ethanol will survive? I think when the angry, hungry people descend on Washington
with fire in their eyes ethanol from corn will be gone forever. You will face years without government payments, without markets, and with high input costs.

If you were ahead of the curve you would push your Reps and Senators to shut down ethanol until prices stabilize at a level that lets the livestock industry supply meat at a price the public can pay. You would be far better off taking $6/bu for corn for years than $10/bu this year and have no market and be hated by your fellow Americans next year.
John Geis
Addison, NY

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COMMENTS (3 Comments)

MarcoAtlarge - Wild Rose, WI
If you want to raise cattle bad enough it's really not that hard to grow corn for your animals. My old clunkers even run on the rank ethanol fuel I get from a boat repair shop.
Not much use for DDG, like popal sawdust for Holstein steers.
11:05 AM Jul 10th
 
Will K - KS
It never fails it amaze me how many people in the livestock industry still feel that they have a god given right to cheap corn. For years big profits were made off of cheap feed grain by all except those who actually grew it, so we worked to create new markets in hopes of getting corn above $2. Now the tables have turned and the livestock industry is squealing like a stuck pig.(pun intended). Well guess what, tough we don't care! You are fond os saying that you're are best customer, and that may have been true as long as you could by our product below our cost of production. But it left us dependent of government subsidies for what ever profit we could manage.

Well guess what we've moved beyond you, and if you thing were going back to the old days without a fight think again. Remember people don't have to eat meat. I know several vegetarians and they tend to be thinner and healthier than those of us who are carnivores. In fact Americans are eating less beef and pork than they were 20 years ago, a trend that all the eat beef adds in the world isn't going to change. So the sacrificial land has grown fangs and is now eating the host, I' lmao. For those of you still stuck in the world of 40 years ago who don't know what that means, google it.
8:58 PM Jun 19th
 

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