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To: Snowshoe who wrote (91218)	9/28/2007 5:24:54 AM
From: Doc Bones	Respond to of 206138

HARVESTING CASH The Ethanol Factor Corn Farms Prosper, but Subsidies Still Flow By Dan Morgan Special to The Washington Post Friday, September 28, 2007; Page A01 RADCLIFFE, Iowa -- Corn farmer Jim Handsaker has found a slew of ways to ride the heartland boom in biofuels that is reshaping the economy of rural Iowa. He sold some of his 2006 crop this year for more than $4 a bushel, the highest price in a decade. His stake in two nearby ethanol plants brought in several thousand dollars more in dividends. Meanwhile, soaring farmland prices have pushed the value of the 400 acres he owns to around $2 million. Even so, come October he will get a subsidy check from the government, part of a $1.6 billion installment that the U.S. Department of Agriculture will send to corn farmers. Those annual automatic payments to Handsaker and thousands of other prospering corn growers have long been controversial. But coming at a time when taxpayers are already subsidizing the ethanol industry to the tune of $3 billion a year, the double-barreled support system for those who grow corn and those who turn it into fuel has begun to draw fire in Congress. "Federal farm subsidies are already narrowly focused on certain crops and are excessive," said Sen. Richard G. Lugar (R-Ind.), a farmer and former chairman of the Senate agriculture committee. "They become ridiculous given the exploding possibilities to grow crops for biofuels production." So far, Congress has shown little inclination to adjust the subsidies to account for the new energy-driven rural economy. A House-passed farm bill would give corn growers $10.5 billion over the next five years, even if prices stay high. These "direct payments," a kind of annual allowance, are set by formula and go out automatically, regardless of prices, profits, yields or weather. At the same time, a Senate-approved energy bill would double the federal requirement for the use of ethanol from corn -- a move that should further buttress corn prices. Handsaker, a Republican who keeps a framed picture of President and Mrs. Bush in his office, argues that such farm subsidies help keep agricultural land in the hands of family farmers and away from corporate monopolies. [continued at] washingtonpost.com

To: Snowshoe who wrote (91218)	9/29/2007 7:20:08 AM
From: elmatador	Respond to of 206138

Ethanol from Brazil is an strategic reserve for the US. In the war games the think tanks do, they count with US dropping the 54c tariff in case Hormuz Straight is blocked or Iran fucks up. "Or Elmat gets his wish, and we import ethanol from Brazil?" I hope we don't need a war for thatwish to become truth QUOTE: A recent article in the Sunday Telegraph (September 2nd) it was revealed that the United States is wargaming a possible confrontation with Iran. In the scenario Iran has tested a nuclear weapon, thrown out IAEA inspectors, is causing sectarian strife in Iraq, and has blockaded the Straits of Hormuz. The Straits are a choke point in the Persian Gulf region. If blockaded, and other nations are not able to export their oil, oil prices would double. The Heritage Foundation participated in this wargaming session, and weighed in on the economic aspects. Yes, oil would rise in price, millions here in the US would lose their jobs, and approximately $161 billion would be gone from our GDP in one quarter. But they balance the dire news with better news. Releasing strategic oil reserves, drilling in alternative locations, ending import tariffs on ethanol fuel, and breaking the blockade itself are among the recommendations the heritage Foundation had, and they say it would "eliminate virtually all of the negative outcomes from the blockade." commonconservative.com