Tim Plaehn

Is the Ethanol Mandate Likely to be Repealed?

Back again.

I am happy that my investment in VeraSun Energy is up 65% in the last 5 weeks.

And Mr. Subsidy Eye, I see you are Swiss based. Are you interested in U.S. investing or using Seeking Alpha for another agenda?

Is the Ethanol Mandate Likely to be Repealed?

Subsidy Eye,
I appreciate your comments on my "analysis". You have valid points. I will reply on the acreage note, looking at the graphs is is fairly obvious that from 06 to 07 farmers elected to plant corn instead of soybeans. Note that soybean acreage fell quite a bit. I grew up in Iowa and farmers their plant either corn or soybeans depending on what they believe will be most profitable. Also, the first graph in you link shows total planted acreage for all crops pretty level for the last several years and well below the amount planted in the 1980's.

In regards to Brazilian ethanol I find it very hard to believe that the U.S. Congress would ever pass legislation that would benefit Brazilian agriculture at the disadvantage of U.S. farmers. Think about it.

Is the Ethanol Mandate Likely to be Repealed?

Has anyone figured how much more energy farmers are using to harvest the same amount of corn that they harvested before ethanol became a major user of corn. I would guess that energy usage in the farm belt has not changed since the ethanol boom. The corn raised is just going for a different purpose. The same number of corn acreage is still being planted.

Since this is a stock market blog: buy VeraSun Energy, VSE, enjoy the boom.

Final note, at the present time Brazil has enough excess ethanol capacity to provide less than 10% of the U.S. demand and are already shipping most of their excess capacity to the U.S. It would take them several years to tear up enough rain forest to plant enough sugar and build enough plants to make a major dent in the U.S. usage.

Ethanol Will Become a Fad Without Government Intervention

Ethanol is the only blending source for cities that need to meet clean air requirements. There is much focus on ethanol as an alt. fuel, but few realize it is necessary to meet EPA clean air requirements for many areas.

It's Now 'Official': Ethanol Is a Scam

A comment on the cutting forests to plant more corn to make ethanol argument. In 1932 the U.S. had 113 million acres of corn planted. Now the typical crop is 85 to 90 million acres. Who dug up the corn fields to plant trees?

Corn yield improve every year and strains are developed to increase sugar content. Ethanol plants are getting more efficient, more ethanol from less corn using less water and energy. It is the American way to improve business efficiency. Ethanol companies will do the same. And when cellulosic ethanol becomes economically viable companies like VSE and ADM will be the leading producers because the will have the infrastructure to produce billions of gallons at the lowest cost.

It's Now 'Official': Ethanol Is a Scam

So we are responsible for feeding Africa. Maybe they could learn to grow their own food!

Right now ethanol reduces our gas consumption by about 4%. It supplies jobs for 1000's of people. Farmers are making good profits and buying machinery, supplies, cars & trucks. Too bad this "scam" provides a good living to so many people!