Ethanol glut may RAISE gas prices.

[YALE]

One more thing to consider: 2.5:1 is a shit (gross) margin, in economic terms.

[Vertnut]

I also know that in drought conditions, or areas with water shortages, farmers and ranchers aren't real fond of water being poured on corn being raised for ethanol.

[TX21]

I wonder if this will hold any weight and acctualy jump $1. I kind think it could but it will prob take a long time and creep up over a 1-2 year period.

[jdgregory84]

Diesel FTMFW

Hasn't diesel been more expensive than unleaded for a long time now?

[krazy kris]

Ethanol=pure shit
What is the advantage to using ethanol.
All I see are negatives.shitty fuel mileage terrible in small engines and 2 stroke outboards. I have to use stabil every time I put fuel in my boat.

[Big Dad]

You should see this area

SE SoDak, NE Neb, NW Iowa

the homes, the buildings ,farm equip the farmers have purchased in recent years is mind blowing ..

where just a few years ago , if you seen one 4x4 tractor in 100 miles ..Now you see multiple in one yard , and often

The homes easy pass $350,000 on many places , the common building would be 80 x 120 ..and I see much bigger

Farm land in Sioux County Iowa is going for well over $15,000 a acre

Banks are having trouble loaning to farmers, they don't need any money




and

.44 cents of every food stamp dollar goes right back to farm subsidies

http://en.wikipedia.org/wiki/Agricultural_subsidy

The United States currently pays around $20 billion per year to farmers in direct subsidies as "farm income stabilization"[9][10][11] via U.S. farm bills. These bills pre-date the economic turmoil of the Great Depression with the 1922 Grain Futures Act, the 1929 Agricultural Marketing Act and the 1933 Agricultural Adjustment Act creating a tradition of government support.

The beneficiaries of the subsidies have changed as agriculture in the United States has changed. In the 1930s, about 25% of the country's population resided on the nation's 6,000,000 small farms. By 1997, 157,000 large farms accounted for 72% of farm sales, with only 2% of the U.S. population residing on farms. In 2006, the top 3 states receiving subsidies were Texas (10.4%), Iowa (9.0%), and Illinois (7.6%). The Total USDA Subsidies from farms in Iowa totaled $1,212,000,000 in 2006.[12] From 2003 to 2005 the top 1% of beneficiaries received 17% of subsidy payments.[12] In Texas, 72% of farms do not receive government subsidies. Of the close to $1.4 Billion in subsidy payments to farms in Texas, roughly 18% of the farms receive a portion of the payments.[13]

"Direct payment subsidies are provided without regard to the economic need of the recipients or the financial condition of the farm economy. Established in 1996, direct payments were originally meant to wean farmers off traditional subsidies that are triggered during periods of low prices for corn, wheat, soybeans, cotton, rice, and other crops."[14]

Top states for direct payments were Iowa ($501 million), Illinois ($454 million), and Texas ($397 million). Direct payments of subsidies are limited to $40,000 per person or $80,000 per couple.[14]

The subsidy programs give farmers extra money for their crops and guarantee a price floor. For instance in the 2002 Farm Bill, for every bushel of wheat sold, farmers were paid an extra 52 cents and guaranteed a price of 3.86 from 2002–03 and 3.92 from 2004–2007.[15] That is, if the price of wheat in 2002 was 3.80 farmers would get an extra 58 cents per bushel (52 cents plus the $0.06 price difference).

Corn is the top crop for subsidy payments. The Energy Policy Act of 2005 mandates that billions of gallons of ethanol be blended into vehicle fuel each year, guaranteeing demand, but US corn ethanol subsidies are between $5.5 billion and $7.3 billion per year. Producers also benefitted from a federal subsidy of 51 cents per gallon, additional state subsidies, and federal crop subsidies that can bring the total to 85 cents per gallon or more. However, the federal ethanol subsidy expired December 31, 2011.[16] (US corn-ethanol producers were shielded from competition from cheaper Brazilian sugarcane-ethanol by a 54-cent-per-gallon tariff, however that tariff also expired December 31, 2011.[17][18])

[black2002ls]

Hasn't diesel been more expensive than unleaded for a long time now?

I could be wrong, but as best I can remember as soon as .gov required the switch to ULSD (Ultra Low Sulphur Diesel) is when diesel prices started to rise above gasoline

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[jdgregory84]

I could be wrong, but as best I can remember as soon as .gov required the switch to ULSD (Ultra Low Sulphur Diesel) is when diesel prices started to rise above gasoline

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So like 5+ years?

[black2002ls]

So like 5+ years?

Sounds about right. Seems the guidelines for improved diesel emissions came about at that time as well, which affected the late 2007 model year passenger vehicles.

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[Captain Crawfish]

lmao at ballas who drive premi fuel vehicles who cry about getting raped on gas. live like a Balla pay like a Balla.

[YALE]

Sounds about right. Seems the guidelines for improved diesel emissions came about at that time as well, which affected the late 2007 model year passenger vehicles.

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2007 was the first year for mandatory ultra low sulfur diesel.

[black2002ls]

2007 was the first year for mandatory ultra low sulfur diesel.

I thought it was the same year dodge put the 6.7L in the heavy duty trucks.

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[YALE]

I thought it was the same year dodge put the 6.7L in the heavy duty trucks.

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I believe that would be 2006.5.

[black2002ls]

I believe that would be 2006.5.

Its been a while! That was all going on as I started selling them in 2007. I couldn't remember for sure what year they switched. We were one of the last deaers in the nation with early model year 5.9L

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[FordMustangLove]

lmao at ballas who drive premi fuel vehicles who cry about getting raped on gas. live like a Balla pay like a Balla.

I don't mind the 93 oct required for my car but even Nissan stated that the 03-06 350z are not officially compatible for the 10% ethanol added to gasoline.