Obama's Ethanol Mandate Will Make Food Prices Skyrocket

[Nova78]

Ethanol Mandate Will Make Food Prices Skyrocket

In the midst of one of the most severe droughts on record, Washington’s ethanol mandate is making the corn shortage even worse. Markets have responded quickly and flexibly to the drought where they can, but some corn buyers are sidelined by the rigid government ethanol mandate.

Corn prices are skyrocketing, and livestock farmers are suffering from the high price of corn-based feed. Nonetheless, the government mandates that 13.2 billion gallons of corn ethanol must be produced in 2012. The mandate has not been changed at all in response to changing real-world conditions, despite repeated pleas from American beef and pork farmers.

Under a free market system, the pain of the drought would be spread around—corn growers, livestock farmers, fuel producers would earn a little less than usual, and the consumers of corn, meat, and gasoline would pay a little more. A free market allows participants to change the quantities they supply or demand in response to price fluctuations.

A government mandate, by contrast, fixes quantities and forces prices to rise rapidly when nature reduces the supply. In this case, livestock farmers and corn consumers—including the poor in America and abroad—bear the brunt of the inflexible ethanol mandate. Even in a good year, the ethanol mandate makes food more expensive for American consumers. The Heritage Foundation’s Nick Loris has written further on the damage done by government mandates and subsidies in the corn ethanol industry.

Obama continues to stick it to you at ever turn,like a wild horse ,he is trying to break your spirit....

 

[Katzndogz]

Communist government generally have an induced famine at their beginnings.

 

[daveman]

Funny how Mother Nature never fulfills her end of the 5-Year Plan, huh?

Bitch. Doesn't she know she's subject to government diktats?

 

[Moonglow]

induced famine? And God has done it also, but I suppose that the president controls the weather also.

 

[Moonglow]

Immediately after railing against picking winners and losers in the market on page 19, Romney calls for maintaining the ?RFS.?? He wisely avoided using the term ?ethanol mandate,? but that is ostensibly the heart and soul of the Renewable Fuels Mandate.? No other current federal policy is more of an anathema to the ideals of limited government, free markets, and economic growth than the Renewable Fuels Mandate.

Romney Must Cease and Desist From Ethanol Mandate | RedState

 

[Moonglow]

It's not all marxism

Ethanol Mandate Will Make Food Prices Skyrocket

In the midst of one of the most severe droughts on record, Washington’s ethanol mandate is making the corn shortage even worse. Markets have responded quickly and flexibly to the drought where they can, but some corn buyers are sidelined by the rigid government ethanol mandate.

Corn prices are skyrocketing, and livestock farmers are suffering from the high price of corn-based feed. Nonetheless, the government mandates that 13.2 billion gallons of corn ethanol must be produced in 2012. The mandate has not been changed at all in response to changing real-world conditions, despite repeated pleas from American beef and pork farmers.

Under a free market system, the pain of the drought would be spread around—corn growers, livestock farmers, fuel producers would earn a little less than usual, and the consumers of corn, meat, and gasoline would pay a little more. A free market allows participants to change the quantities they supply or demand in response to price fluctuations.

A government mandate, by contrast, fixes quantities and forces prices to rise rapidly when nature reduces the supply. In this case, livestock farmers and corn consumers—including the poor in America and abroad—bear the brunt of the inflexible ethanol mandate. Even in a good year, the ethanol mandate makes food more expensive for American consumers. The Heritage Foundation’s Nick Loris has written further on the damage done by government mandates and subsidies in the corn ethanol industry.

Obama continues to stick it to you at ever turn,like a wild horse ,he is trying to break your spirit....

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Maureen Cannon, an investment banker with the Valence Group and a specialist in biofuels, said fuel blenders would probably continue adding ethanol to gasoline even without the EPA mandate partly because it’s relatively cheap. In the futures market, for example, ethanol currently costs about $2.67 a gallon, compared with $3.07 for a gallon of gasoline. Ethanol also helps boost the octane level of gasoline.

“There’s a lot of moving parts in studying the production of ethanol, but it amounts to gasoline blenders competing for corn with livestock producers,” Cannon said. “Ethanol production and price have evolved independently of government mandates.”

The fuel industry also has plenty of corn in storage, while blenders have built up renewable-fuel credits over the past few years. These two measures will reduce ethanol producers’ corn demand until next year’s harvest, she said.

“Gasoline blenders have accumulated ... blending credits of more than two billion gallons,” Cannon said. “This flexibility within the current regulations should rein in prices if corn harvests turn out to be worse than currently forecast.”



EPA agrees to study the issue
As the debate picks up, Wall Street has started weighing in.

“Pressure for the EPA to evaluate a partial waiver of the Renewable Fuel Standard is mounting,” Deutsche Bank analyst Christina McGlone said in a note to clients on late last week.

On Monday, at the request of Arkansas’s and North Carolina’s governors, industry players and members of Congress, the EPA opened a 30-day public comment period on whether to waive the Renewable Fuel Standard. The agency is required to make a decision in 90 days.

August 22, 2012

Drought revives fuel-versus-food fight - Page 2 - MarketWatch

 

[Rshermr]

Ethanol Mandate Will Make Food Prices Skyrocket

In the midst of one of the most severe droughts on record, Washington’s ethanol mandate is making the corn shortage even worse. Markets have responded quickly and flexibly to the drought where they can, but some corn buyers are sidelined by the rigid government ethanol mandate.

Corn prices are skyrocketing, and livestock farmers are suffering from the high price of corn-based feed. Nonetheless, the government mandates that 13.2 billion gallons of corn ethanol must be produced in 2012. The mandate has not been changed at all in response to changing real-world conditions, despite repeated pleas from American beef and pork farmers.

Under a free market system, the pain of the drought would be spread around—corn growers, livestock farmers, fuel producers would earn a little less than usual, and the consumers of corn, meat, and gasoline would pay a little more. A free market allows participants to change the quantities they supply or demand in response to price fluctuations.

A government mandate, by contrast, fixes quantities and forces prices to rise rapidly when nature reduces the supply. In this case, livestock farmers and corn consumers—including the poor in America and abroad—bear the brunt of the inflexible ethanol mandate. Even in a good year, the ethanol mandate makes food more expensive for American consumers. The Heritage Foundation’s Nick Loris has written further on the damage done by government mandates and subsidies in the corn ethanol industry.

Obama continues to stick it to you at ever turn,like a wild horse ,he is trying to break your spirit....

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And Nova78 starts out another thread with another right wing topic from another right wing sight, in this case Heritage. WHAT A SURPRISE. No confusing conversation with Nova, just good old right wing dogma. What a clown. Some day he will surprise us all with an impartial source.

 

[EdwardBaiamonte]

Some day he will surprise us all with an impartial source.

too stupid!!! Why don't you show us one example of an impartial source that was useful??????????

 

[Nova78]

Some day he will surprise us all with an impartial source.

too stupid!!! Why don't you show us one example of an impartial source that was useful??????????

He can't ,all he does is slams anyones post he considers anti Obama ,slam the messenger and hide from the the truth, .....

 

[Rshermr]

Some day he will surprise us all with an impartial source.

too stupid!!! Why don't you show us one example of an impartial source that was useful??????????

He can't ,all he does is slams anyones post he considers anti Obama ,slam the messenger and hide from the the truth, .....

Ed says I should show an example of an impartial source that was useful, and Nova says I can not. Because, apparently, they do not consider impartial sources useful.
So why question nova's post irrational. When you use a source that only attacks anything the Democratic party does, never says anything good about them, and fully supports the repubs all the time, then, you see, you have a truly impartial site. Which, of course, they know.
Second, you have two guys who ONLY post the same dogma as Heritage, CATO, and many other right wing site they can find. And both are incapable of arguing their points. Pure waste of time. And totally dishonest. And I hate dishonest people.

 

[EdwardBaiamonte]

And both are incapable of arguing their points.

Actually, I've asked you 12 times now to explain the difference between a liberal stimulus and a liberal bubble and you have been incapable and afraid to even try.


to scare the dumb liberal professor(Rshermr) away even further:

Paul Krugman: As Paul McCulley of PIMCO remarked when the tech boom crashed, Greenspan needed to create a housing bubble to replace the technology bubble. So within limits he may have done the right thing

 

[EdwardBaiamonte]

Ed says I should show an example of an impartial source that was useful

yes, and , surprise, the goof liberal have not been able to provide even one!!