Farming Message Board - Msg: 24690124

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Non-Tech : Farming

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To: patron_anejo_por_favor who wrote (1365)	6/19/2008 4:32:48 PM
From: Snowshoe	Read Replies (2) of 4448

I guess I just don't understand all the noise about the ethanol tariff. You said: "a tariff rollback is enacted it would be HUGE for CZZ!" Why? The world is full of other energy-hungry countries that don't have such a tariff. Why aren't the Brazilians shipping ethanol to them, instead of whining about the US tariff? And to reiterate my point, if you scrap the US tariff then there's no point in keeping the subsidies or mandates either. If you want to rationalize the market to remove all government intervention, why would anyone ship Brazilian ethanol all the way to the USA? Seems to me it would make more sense to use that green bio-fuel locally in Brazil. But right now Brazil still consumes lots of diesel made from yucky black crude oil. So why don't they either switch over vast amounts of that sugar cane land to grow soybeans for bio-diesel, or swap out their diesel engines for big honking flex-fuel engines that burn their local ethanol? Seems like there's less here than meets the eye. What am I missing? snowshoe@devilsadvocate.com

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