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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (5738)	4/7/2007 10:07:10 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24226

What is the real cost of corn ethanol? Ronald R Cooke, Financial Sense ONline ..Thanks to Federal mandates and subsidies, corn used for the production of corn ethanol is expected to increase from ~ 700 M Bushels in 2000/2001, to 3.2 B bushels in 2007/2008 - an increase of 357 percent. On December 11, 2006, the USDA estimated 2006-2007 U.S. ending stocks would be 935 million bushels, down from 1.97 billion bushels in 2005-2006. That decreases the ending stocks by more than 50 percent and puts the ending stocks to use ratio at 8%, - the lowest in 11 years. It should be obvious to all, we are going to need a lot more acreage and big yield improvements if corn production is going to keep up to demand. Prices could exceed $4.50 per Bu by the end of 2008. That’s a price increase of 125% over 2005/2006 season prices. Score one for the agribusiness lobby. .. (2 Feb 2007) Some readers may tire of reading about the problems of corn-ethanol in the US, as we’ve certainly run plenty of articles about them. Unfortunately the gross subsidies and their consequences are still increasing, so we must persist. Ron Cooke challenges all the benefits claimed by the industry and makes important points on ‘Who Benefits’ from the current bonanza. -LJ much more at financialsense.com