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- Ethanol: Our Answer to Reducing U.S. Dependence on Foreign Oil [view article]
- Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
- Alternative Energy Investors See High Oil Prices as Temporary [view article]
- A Change-of-Pace Growth Strategy [view article]
- Growth in Corn Harvest Means Good News for Ethanol Producers [view article]
- Cramer: "Ethanol Is a Fuel That Doesn't Work" [view article]
- EPA Rejects Congress's Ethanol Waiver [view article]
- Politics Driving Ethanol to Brazil [view article]
- Heavy Rains Hurting Corn and Soybean Yields, Raising Prices [view article]
- Archer Daniels Midland Operating Profits Continue to Grow [view article]
- Is the Ethanol Mandate Likely to be Repealed? [view article]
- Obama's Misguided Ethanol Policy [view article]
loading ...Recent ADM Articles
- Archer Daniels-Midland: Why I'm Ready to Buy
- Dividend Aristocrats Handily Outperforming Main Indexes in 2008
- Ethanol: Our Answer to Reducing U.S. Dependence on Foreign Oil
- Growth in Corn Harvest Means Good News for Ethanol Producers
- EPA Rejects Congress's Ethanol Waiver
- Politics Driving Ethanol to Brazil
- Archer Daniels Midland Operating Profits Continue to Grow
- Is the Ethanol Mandate Likely to be Repealed?
- A Change-of-Pace Growth Strategy
- The Global Food Crisis: From Panic to Organic
- Full List of Articles »
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EPA Rejects Congress's Ethanol Waiver [view article]
The problem is Congress. Congress makes some flat out idiotic law and then hands it to the agencies to interpret and enforce. The RFS and other laws have sections saying, in effect, Congress is making this over-arching law but if it turns out to be a disaster than the administrator (in this case the EPA) has the power to waive it. No disaster, no waiver, which is EPA's position. Don't like the law? Elect a different Congress. ReplyEPA Rejects Congress's Ethanol Waiver [view article]
Corn based ethanol is just flat out a dumb idea that came from a bunch of no nothing politicians; the switch grass crowd. I would like to see it replaced by sugarcane grown in the southeast, Hawaii, and eventually Cuba and imported stuff from Brazil. ReplyEPA Rejects Congress's Ethanol Waiver [view article]
Speculative activity????? No kidding.
Go To:
www.stopoilspeculation.../
AND SIGN THE PETITION.
I am glad the EPA did not hurt the US ethanol producers. Food prices are up because of Commodity Speculation.
I would make Commodity Futures Trading illegal. India has done it with some commodities. Reply
Heavy Rains Hurting Corn and Soybean Yields, Raising Prices [view article]
David, I am not a farmer but I am related to them. My grandma told me a couple of stories about their farming and rain. When they would plant corn and the floods would come there was not enough time to let things dry out and re-plant corn. There was however, time to plant soybeans with a shorter growing season. Soybeans make their own nitrogen. I read somewhere that corn uses 57% of fertilizer. At the end of the season more fertilizer will have been used but not as much as Potash shareholders dreamed of in the winter. Having said that I started accumulating Deere in their DSP. Very boring, but Deere's a different company than when I played with toy tractors.How do things measure up since your last posting? Reply
EPA Rejects Congress's Ethanol Waiver [view article]
"When we mandate how much Texas charges for oil, he can have some input on how much ethanol we make."And here I had naively thought that socialism was washed up as a concept, especially one would think on a blog appealing to capitalist investors. (And I do not mean that term in any derogatory sense.)
The other approach is to simply let the market determine prices and allocate goods. It is not inconsistent to ask for market prices and no quotas for either oil or ethanol. Reply
EPA Rejects Congress's Ethanol Waiver [view article]
Corn is off 35% from recent highs as ethanol production continues to grow. I think this issue has passed. Nothing will change except ethanol companies will start making some profits. ReplyEPA Rejects Congress's Ethanol Waiver [view article]
The Governor of Texas, possibly the largest Oil producing state is against the production of Ethanol? What a surprise.Cattle ranchers in his state have to pay too much for corn? Everybody in my state is paying too much for gasoline and alot of it comes from Texas. When we mandate how much Texas charges for oil, he can have some input on how much ethanol we make. Reply
EPA Rejects Congress's Ethanol Waiver [view article]
"Perry may disagree, but a report from the Council of Economic Advisors in May said only 3% of the 40% increase in food costs worldwide could be attributed to the diversion of corn to ethanol production."And a report from the World Bank said that "7075 percent [of the] increase in food-commodity prices [between January 2002 and June 2008] was due to biofuels and the related consequences of low grain stocks, large land-use shifts, speculative activity and export bans."
econ.worldbank.org/ext... Reply
gordon
EPA Rejects Congress's Ethanol Waiver [view article]
as usual the USEPA is out to lunch. here you have a bunch of lawyers (not an agricultural economist among them) who are totally disconnected from the real world.> jack Reply
Reply
Archer Daniels Midland Operating Profits Continue to Grow [view article]
Although your comments on Brazil are mostly correct, the tariff on Brazilian ethanol is in place to insure that a US subsidy does not go to foreign production. As I am sure you are aware, any ethanol blended into gasoline (Brazilian included) receives a $0.51/gal tax credit by the US government. The tariff essentially nullifies the blenders credit.The blenders credit will be reduced next year to $0.45/gal and I am definitely in favor of the tariff being reduced to that level, but as an American tax payer, I do not want my tax money going to support international production. As long as the VEETC tax credit is in place, the tariff should be as well. Reply
Is the Ethanol Mandate Likely to be Repealed? [view article]
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? Reply
Is the Ethanol Mandate Likely to be Repealed? [view article]
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. Reply
Archer Daniels Midland Operating Profits Continue to Grow [view article]
From my research, Brazil is on track to export about 700 million gallons of ethanol to the U.S. in 2008. I think the comment above that the ethanol will come in spite of the tariff is probably correct, so Uncle Sam might has well collect his cut.The comments above gives me a continued positive outlook for my investment in VeraSun Energy, earnings out next week! Reply
Archer Daniels Midland Operating Profits Continue to Grow [view article]
I will take this opportunity to add some useful words about Brazilian bio-fuels.As rising food prices continue to threaten food security around the world, Brazilian ethanol is one obvious solution being largely ignored. Brazil set up its efficient fuel alternative program in the 70s, when the first oil crisis hit the world. Now Brazilians drive cars moved by ethanol or gasoline mixed in any proportion. And since long ago gasoline in Brazil is not pure, but blended with 25% ethanol, resulting that internal consumption of ethanol in the country is already superior to gasoline's. Ethanol in Brazil is already much cheaper than gasoline at current international oil prices.
Brazilian ethanol is produced from sugarcane without any governmental subsidies and the fuel has a very competitive price. Researchers are increasing the productivity (more fuel extracted per sq.km. of crops) by adapting sugar canes species to each type of land and topography. The productivity now is more than 3 times the records of 30 years ago and it keeps on raising, being expected to soar very soon when the technology to extract ethanol from cellulosic materials (crop waste) will be available for large scale production.
Ethanol production in Brazil uses just one percent of total arable land, and the country can expand its sugarcane fields without disturbing sensitive land areas (like Amazon), just by tapping land such as depleted pastures. Just raising intensity of cattle production from the current 0.8 animals per hectare to 1.2 animals (a target already far exceeded in many parts of the country) would release about 80m hectares of land for crops. There remains plenty of room for expansion: the country has 355 million hectares of farmable land, of which 7 million hectares under sugarcane of which the amount used to make ethanol fills 3.4 million hectares (compared to 200m hectares of pasture). Another 105.8 million hectares remained available, which allows Brazil to increase ethanol production without affecting the environment or food. By comparison, the additional terrain for Brazilian crops could surpass all of the land now under cultivation in the European Union.
Meanwhile, Brazilian food production has doubled in the past decade and that’s the most impressive thing about ethanol from sugarcane: in contrast to corn-based American ethanol or biodiesel derived from soybean oil, there is no cost pressure and no competition with food.
Another persuasive fact for incentiving ethanol production in Brazil is the electric energy that is generated as a by-product of ethanol processing: taking into consideration the energetic balance, the electricity generated in sugar cane processing in Brazil is almost as large as its ethanol equivalence. It's like a two large scale hydroelectric plants generating electricity exactly when it's more necessary: in the Brazilian dry season! So the producers of ethanol are also having increasing revenues by selling electricity to the country's national electric system, which has become an strategic and reliable source of electricity. For all these reasons, ethanol in Brazil is a win-win game for the country, the farmers, the consumers and the environment.
Off course Brazilian ethanol does not intend to concur with petroleum, but it could ease up current oil crisis by supplying a small part of the world energy demand. It is only necessary to look at the increasing demand from the non-oil countries like India and China to understand that the very high price of oil is here to stay. With the existing price of oil, the permanent threat of war in the Middle East, the international geopolitics, and the environmental problems, there seems to be no other easy solution for the energy problem away from the liquid ethanol produced out of sugarcane. This is certainly a very important aspect of the Brazilian economy for the next few years and the rest of the world will have to accept the reality of the liquid ethanol from sugarcane as the right and best solution for the oil crisis.
The problem is that much of Brazil’s ethanol exports continues to face prohibitive tariffs and other barriers to developed markets in the US and Europe. The United States currently places a 54-cent-a-gallon tariff on ethanol imported from Brazil. Consumers in the country are being severely affected, particularly in areas such as the Southeast, where corn does not exist and the logistics to bring ethanol from the center of the country is practically impossible. It is difficult to understand the maintenance these tariff levels, except for political reasons. The developed world appears purposely myopic in relation to the opportunities Brazil presents, maybe it's because that would upset wealthy US and European farmers – a price apparently not worth paying. Reply
Is the Ethanol Mandate Likely to be Repealed? [view article]
Bouzerdad: The Amish use, essentially, organic growing methods. Great if more producers can adopt those, but lot's of luck. The percentage of U.S. land planted to corn on farms that are certified organic is a fraction of 1%. Reply