Ethanol's Unintended Consequences
Jun 14, 2011
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.