Jack I responded to this earlier when you were Hugh.
Guess you didn't see it. I hate to type it all over again cause I didn't save it.
The post got deleted cause name calling erupted from the post. Not by me but by others.
I will summarize what I responded.
I may have use the word debate wrong cause it was an email exchange between Dr. Pimental and myself. We went back and forth about 4 times and he quit when I told him he could not deduct the cost of growing the corn and then deduct the corn value again as an expense at the ethanol plant in the form of energy. He also deducted machinery expense and that is not energy cause that came from the ground as iron and labor built it. That is a money making industry.
You make my figures stronger, cause I DID figure in the tax paid on fuel to produce the corn. So part of my figures are tax money not energy.
So cost would be less per acre if I deduct the taxes off my expenses
Costs are also over stated cause we all know the total cost for seed, chemicals, and fertilizer are not all energy related part of it is labor and materials from the earth and I included the total cost.
I was being very high in my energy costs per hectare to produce and we still have a positive return after you take out your factors for ethanol being lower than diesel in kcals.
We still have the corn to feed a person instead of a tank of gas. They didn't buy the corn when it was cheap so why do I care if they don't buy the corn now for food. There will still be a carry over of corn this year for food if they want to pay us for it. Who says the U.S. has to feed the world. No one else does.
We as farmers can produce enough for food and ethanol if we are paid to do it. South America is opening up more land for production every year.
Where does the $1.38 figure for subsidizing come from?
We still have a positive amount of energy return for ethanol production and NOT a negative return as you said.
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