It is insulting to see gossip/opinion stated as fact with nothing to back it up. Regarding MN State subsidies...The Legislature enacted a 20 cent per gallon tax on I think 15 million gallons of production of the small plant- typical farmer coops. Beyond that production, they get none. It sunsets in I believe, 10 years after production starts. So, no, there is no definitive answer to how much subsidy it is per gallon, since some gallons are not subsidized. Few years ago, Gov Tpaw with a stroke of a pen, cut out subsidies to save money. Was later returned to some extent. Viability at various plants? Depends on many factors. Not all plants operate at the same efficiency or have the same costs, outstanding loans, etc. In January, eth was leaving the plant at $1.40 per gallon. Corn cost was 3.25-3.50. Had some production problems, and the plant was not making money. Lost money last year when corn was 5-6-7. Eth price follows the gas price trendlines to a large degree. Made lots of profit when corn was under 3, and eth was about 1.70. Regarding "studies"...Of 12 studies, 9 of them showed a positive energy balance, 3 did not. All 3 of them were by Pimental, former Shell employee who is a bug professor at Cornell(?). Obviously skewed info...he figured the energy needed to mine the ore to make the steel to make the farm equipment and steel for the ethanol plants. Figured all corn was irrigated, so had a high energy cost there. Assumed all the corn was consumed in production, while only a third is...balance is DDGS, excellent high protein (24-27%) bovine feed, utilized to some extent by single-stomach animals. Corn bushel produces about 2.7 gallon eth, 18# DDGS. Much of the public got hooked on the food vs fuel debate, thinking the corn is used up in production. Who pushed that? National Grocer"s Association. Typically takes 1 btu of energy to produce 1.67 btu eth. 1 btu energy produces 3.1 btu biodiesel. Can I prove this? yup!
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Today's Featured Article - Good As New - by Bill Goodwin. In the summer of 1995, my father, Russ Goodwin, and I acquired the 1945 Farmall B that my grandfather used as an overseer on a farm in Waynesboro, Georgia. After my grandfather’s death in 1955, J.P. Rollins, son of the landowner, used the tractor. In the winter 1985, while in his possession the engine block cracked and was unrepairable. He had told my father
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