I agree. No mandate should be in place. It wasn't mandated when we started using ethanol 35 years ago. For that reason we choose to use it on our own and were not forced in to it.
Bio diesel is not making it cause the cost to produce a gallon is way to high.
When beans were $5.00 a bushel and diesel was $3 a gallon it could work. When beans went to $10 and diesel was still $3 no way it will work.
When ever corn is under 2.5 times the price of Gas, Ethanol will work. Example, if corn is $10 a bushel gas has to be above $4 to work.
Right now gas is about $3.50 a gallon so the distillers can pay up to about $8.00 and still make it work. They get over 2.8 gallons of ethanol from a bushel of corn now. That leaves about 25 pounds of distillers grain left to sell after removing the ethanol.
Without the subside corn could only be about 2 times the price of a gallon. So with gas at $3.50 the distillers could not pay over $7.00 to make money.
Ethanol is here to stay. I said this a couple of years ago, if gas goes down so will corn. If there actually was a gas shortage and it went to $5 a gallon we could see $10 plus corn from the demand on ethanol.
I also said 2 years ago for the livestock guys to hang in there, good prices were coming to offset the increase in feed costs.
At that time cattle were $75 a hundred. Today they are close to a $130 and working up.
Hog guys are seeing good prices as well and making money even with $6 corn.
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Today's Featured Article - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
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