Why are we still using ethanol?

[DEWFPO]

Tesla is having a come to Jesus moment right now.. Tax credits ( subsidies ) are no longer being handed out for their product... and the cars appeal is tanking.

You're right about the tax subsidies, so Tesla is lowering their prices, but I have not seen anything to support your last statement "the cars appeal is tanking". Is that something you read somewhere?

DEWPFO

 

[goeduck]

Source: Downsizing the Federal Government

The federal government spends more than $20 billion a year on subsidies for farm businesses. About 39 percent of the nation's 2.1 million farms receive subsidies, with the lion's share of the handouts going to the largest producers of corn, soybeans, wheat, cotton, and rice.1

The government protects farmers against fluctuations in prices, revenues, and yields. It subsidizes their conservation efforts, insurance coverage, marketing, export sales, research, and other activities. Federal aid for crop farmers is deep and comprehensive.

However, agriculture is no riskier than many other industries, and it does not need an array of federal subsidies. Farm subsidies are costly to taxpayers, but they also harm the economy and the environment. Subsidies discourage farmers from innovating, cutting costs, diversifying their land use, and taking other actions needed to prosper in the competitive economy.

 

[ovrszd]

Source: Downsizing the Federal Government

The federal government spends more than $20 billion a year on subsidies for farm businesses. About 39 percent of the nation's 2.1 million farms receive subsidies, with the lion's share of the handouts going to the largest producers of corn, soybeans, wheat, cotton, and rice.1

The government protects farmers against fluctuations in prices, revenues, and yields. It subsidizes their conservation efforts, insurance coverage, marketing, export sales, research, and other activities. Federal aid for crop farmers is deep and comprehensive.

However, agriculture is no riskier than many other industries, and it does not need an array of federal subsidies. Farm subsidies are costly to taxpayers, but they also harm the economy and the environment. Subsidies discourage farmers from innovating, cutting costs, diversifying their land use, and taking other actions needed to prosper in the competitive economy.

I have a very good friend that is a large corn and soybean producer planting 25,000 acres per year.

He completely agrees with you. He wants minimal government involvement. He would rather have no subsidies and let the market play itself out.

This will never happen. It won't happen because taxpayers/consumers don't want it to happen. The outcry would be horrific.

He currently raises 175 bushel per acre corn and sells it for $3.75 per bushel. He would rather raise 50 bushel per acre corn and sell it for $15 per bushel.

Is that okay with you? (Deep thought required)

 

[oldballs]

Most of the threads on TBN i don't have an answer to. And if I was to give one some "Deep thought", I'd only come up with another question.
Cheers,
Mike

 

[Redbug]

I have a very good friend that is a large corn and soybean producer planting 25,000 acres per year.

He completely agrees with you. He wants minimal government involvement. He would rather have no subsidies and let the market play itself out.

This will never happen. It won't happen because taxpayers/consumers don't want it to happen. The outcry would be horrific.

He currently raises 175 bushel per acre corn and sells it for $3.75 per bushel. He would rather raise 50 bushel per acre corn and sell it for $15 per bushel.

Is that okay with you? (Deep thought required)

At $15 a bushel, a free market would balance itself out. But if his corn is something special it may sell for more.

I believe ALL subsidies are misguided because they distort what would otherwise be most the efficient relationship between supply and demand. As a result, we will invariably mis-allocate resources and end up with a net less prosperous civilization. To some extent, every subsidy makes their target problem a little bit worse due to society being a trifle poorer.

 

[ovrszd]

Most of the threads on TBN i don't have an answer to. And if I was to give one some "Deep thought", I'd only come up with another question.
Cheers,
Mike

Me too Mike.

 

[ovrszd]

At $15 a bushel, a free market would balance itself out. But if his corn is something special it may sell for more.

I believe ALL subsidies are misguided because they distort what would otherwise be most the efficient relationship between supply and demand. As a result, we will invariably mis-allocate resources and end up with a net less prosperous civilization. To some extent, every subsidy makes their target problem a little bit worse due to society being a trifle poorer.

If the market pricecfor corn and soybeans quadrupled you and I would be requiring subsidies and not the farmer.

 

[Redbug]

If the market pricecfor corn and soybeans quadrupled you and I would be requiring subsidies and not the farmer.

We would have to do something, like maybe a substitute for corn or soy, or more imports until the market corrected itself. Supply and demand. Price goes up, someone makes a profit selling, then more competition and the market stabilizes once again. That's the way a free market works. Subsidies distort the true market.

 

[ovrszd]

We would have to do something, like maybe a substitute for corn or soy, or more imports until the market corrected itself. Supply and demand. Price goes up, someone makes a profit selling, then more competition and the market stabilizes once again. That's the way a free market works. Subsidies distort the true market.

Fortunately we'll never know.

 

[goeduck]

Oil, and natural gas, may not in fact be fossil fuels.

Hydrocarbons are being found elsewhere in our solar system.

It may turn out to be true, that oil is being formed from primordial carbon, or some other process we don't completely understand.

Dang, all this time I thought that I was being GREEN by recycling dinosaurs.