Simple solution

Submitted by Prometheus 6 on January 5, 2007 - 2:58pm.
on

Tell every farmer you pay subsides for not growing stuff that they have to grow stuff now...and buy what they grow using the subsidy money. Then tell the Republicans that's how pay as you go works.

The lower tally has led to an underestimate of the grain that would be needed for ethanol, clouding the debate over the priorities of allocating corn for food and fuel, said Lester R. Brown, who has written more than a dozen books on environmental issues and is the president of the Earth Policy Institute. “This unprecedented diversion of corn to fuel production will affect food prices everywhere,” Mr. Brown said.

As a bonus you get rid of those farm subsides for folks who don't even know what a rake looks like.

Rise in Ethanol Raises Concerns About Corn as a Food
By ALEXEI BARRIONUEVO

CHICAGO, Jan. 4 — Renewing concerns about whether there will be enough corn to support the demand for both fuel and food, a new study has found that ethanol plants could use as much as half of America’s corn crop next year.

Dozens of new ethanol plants are being built by farmers and investors in a furious gold rush, spurred by a call last year from the Bush administration and politicians from farm states to produce more renewable fuels to curb America’s reliance on oil. But the new study by the Earth Policy Institute, an environmental group, found that the number of ethanol plants coming on line has been underreported by more than 25 percent by both the Agriculture Department and the Renewable Fuels Association, the ethanol industry’s main lobbying group.

The Earth Policy Institute says that 79 ethanol plants are under construction, which would more than double ethanol production capacity to 11 billion gallons by 2008. Yet late last month, the Renewable Fuels Association said there were 62 plants under construction.

The lower tally has led to an underestimate of the grain that would be needed for ethanol, clouding the debate over the priorities of allocating corn for food and fuel, said Lester R. Brown, who has written more than a dozen books on environmental issues and is the president of the Earth Policy Institute. “This unprecedented diversion of corn to fuel production will affect food prices everywhere,” Mr. Brown said.

Bob Dinneen, the president of the Renewable Fuels Association, said the group had not intentionally tried to play down the number of plants under construction. “It has been a moving target,” Mr. Dinneen said in an interview on Thursday. “We are not trying to hide the ball. We are trying to keep up with a growing and dynamic industry as best we can.”

The Renewable Fuels Association has generally played down concerns in the food versus fuel debate over ethanol, saying that estimates showed there would be plenty of corn to meet the demand for both. “We can absolutely do that without having a deleterious impact on consumer food prices,” Mr. Dinneen said.

The National Corn Growers Association said Thursday that farmers were keeping up, noting that growers produced their third-largest crop in 2006 of 10.7 billion bushels. “All demands for corn — food, feed, fuel and exports — are being met,” Rick Tolman, chief executive of the corn growers, said in a statement. “Farmers have always responded to price signals from the marketplace and, historically, we have had much more challenge with overproduction than shortage.”

With spot prices of corn soaring to record highs of nearly $4 a bushel last month, farmers are expected to plant some 85 million acres of corn this year, an increase of 8 percent over 2006 and what would be the largest corn-seeding in the country since 1985, said Dan Basse, president of AgResource, an agricultural research company in Chicago.

Ethanol has raised the incomes of farmers and given new hope to flagging rural economies. But the reliance on corn to produce ethanol in the United States has drawn concerns from some economists, who question whether the drive to corn-based fuel will push up the prices of livestock and retail prices of meat, poultry and dairy products.

 

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Submitted by GDAWG on January 5, 2007 - 7:13pm.
  Huh. I can remember in my travels in the 80s and 90s to the Caribbean and elsewhere, these folks were beating non western nations over the head with clubs for having the audacity to provide subsidies to their native industries because they, the subsidies, were against the "tenents" of the "Free Market Philosophy." And these fools brought into the bullshit game.   Meanwhile, these same people wielding the clubs were paying their industries, as noted above for example, trillions of dollars in subsidies, to this very day!  The point; ain't nothing free in "free markets" but the rhetoric.