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Does Corn Ethanol Cost or Pay

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  • Cornstoves
    Listen up! Ethanol ear money stays home. Money otherwise ear marked for MidEast tourist and terrorist will stay home to tame the local economy. Ethanol s
    Message 1 of 7 , Apr 6 12:13 PM
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      Listen up! Ethanol ear money stays home. Money otherwise ear marked
      for MidEast tourist and terrorist will stay home to tame the local
      economy.

      Ethanol's billion-dollar impact in Missouri
      Apr 6, 2007 12:01 PM, By Jason L. Jenkins
      University of Missouri

      Missouri ethanol production capacity is expected to reach 500 million
      gallons in 2008, adding an estimated $1.17 billion to the state's
      economy annually, according to a study released by University of
      Missouri economists.

      The study, conducted by MU agricultural economists Vern Pierce, Joe
      Horner and Ryan Milhollin, accounts for all direct, indirect and
      induced economic effects of constructing and operating the state's
      ethanol production facilities. The new study updates a report
      released in February 2006.

      "This industry is growing so rapidly, we had to revise our study,"
      Pierce said. "Last year, our highest projected production capacity
      was 350 millions gallons in 2008. Now, it's 800 million gallons in
      2009. It's growing that fast."

      Currently, Missouri ethanol plants produce about 160 million gallons
      annually with an estimated economic impact of $522 million to the
      state and an additional $43 million generated in federal, state and
      local taxes, Pierce said.

      "This is a great industry for Missouri," he said. "We have corn
      producers with more money in their pockets, and that means more money
      in small towns all over Missouri. It goes beyond just the corn
      farmers."

      When annual ethanol production reaches 500 million gallons, an
      estimated 177 million bushels of corn would be used to produce the
      fuel, increasing the value of the state's corn crop at the farm level
      by $76 million, Pierce said.

      "That's $76 million new dollars in the pockets of Missouri corn
      farmers," he said. "That level of production also will support more
      than 7,700 jobs across the state, generate more than $110 million in
      taxes, and produce 1.42 million tons of distillers grain that could
      feed more than 1 million beef cattle."

      Other grain producers also would experience increased profitability
      as fewer acres are planted to soybeans, wheat and rice, resulting in
      higher prices for those crops. However, direct involvement in
      agriculture isn't a prerequisite to benefit from ethanol's economic
      engine, Pierce said.

      "A large percentage of ethanol plants are being invested in by local
      farmers, and they're keeping the profits in their communities,
      bringing it back to Main Street and not sending it to Wall Street,"
      Pierce explained. "Those profits ripple through the community.
      Equipment dealers, feed suppliers, veterinarians, grocers, retailers,
      car dealers — they all benefit."

      Increased tax revenues also would allow for more local investment in
      schools, roads and other infrastructure. "A 20-year-old man living in
      Laddonia, Mo., and working at a factory in Mexico, Mo, will benefit —
      even if he doesn't grow corn or work at the ethanol plant," Pierce
      said. "It's increasing economic value for the entire community."

      Pierce acknowledged that ethanol's increased demand for corn would
      likely push consumer prices for meat, eggs and dairy products higher
      as increased livestock feeding costs force producers to reduce their
      herds and production.

      "But I'd argue that the cost of paying a little more for a steak or
      gallon of milk is worth it if it means I can buy it at my local,
      hometown grocery store that's still in business because of the
      ethanol plant," he said. "These ethanol plants are going to be built
      somewhere in the U.S., and Missouri can capture the value of turning
      our corn into ethanol instead of exporting the raw commodity to other
      states.

      "There's also still a tremendous opportunity for our livestock
      producers to benefit from the use of distillers grains. Livestock
      infrastructure wrapping around ethanol plants will grow to take
      advantage of these feedstuffs grains, adding more economic impact.

      "Ethanol provides opportunities for new wave of agricultural
      diversification off the farm."

      Complete findings of the study, which was funded through an
      unrestricted grant from the Missouri Corn Growers Association, are
      available on the MU Commercial Agriculture Web site:
      http://agebb.missouri.edu/commag/.

      e-mail: JenkinsJL@...
    • Ken
      ... Corn takes a lot of energy to produce it: diesel fuel for tractors and dryers, and fertilizer. Where does the fuel and fertilizer come from? OIL Of
      Message 2 of 7 , Apr 6 12:23 PM
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        Cornstoves wrote:
        > Listen up! Ethanol ear money stays home. Money otherwise ear marked
        > for MidEast tourist and terrorist will stay home to tame the local
        > economy.

        Corn takes a lot of energy to produce it: diesel fuel for
        tractors and dryers, and fertilizer. Where does the fuel and
        fertilizer come from? OIL

        Of course _corn_ farmers love the high prices....even if it takes breaks
        the cattle and hog farmers when their feed prices double.
      • yellowcorvette4
        Ken, Does corn heat take food away from the elderly, the poor, babies, and other countries? Will beef suffer? In realty, increased corn use and production
        Message 3 of 7 , Apr 6 2:14 PM
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          Ken, Does corn heat take food away from the elderly, the poor, babies,
          and other countries? Will beef suffer? In realty, increased corn use
          and production results in less cost per unit of production for corn.
          In contrast, increased demand for Petroleum energy will result in
          increased cost per unit of energy. The more corn used, the more corn
          local farms plant. Farm machinery, land, labor infrastructure is
          already in place resulting in increased production at very little
          increase in farm cost. Multiply the response by 2 million local farm
          families as compared to about five major profit oriented petroleum
          producers.

          UTK Ag extension stats estimate 14 minutes labor to raise one acre of
          corn with 7 minutes machinery time. National corn production averages
          1500 gallons corn per acre. 1500 to 0.5 is a good local return on corn
          production. Compare petroleum which takes one gallon to deliver each
          gallon consumed.

          Artificial corn drying is not required for a corn stove. Corn dry
          enough to slide will burn in a corn stove. Corn storage in a silo is
          adequately dry if corn harvest is two weeks post frost. Solar field
          drying is adequate.

          Fertilizer depends on the source. Once again, avoid petroleum based
          fertilizer. Low till or no till corn used stalks, roots, and animals to
          naturally fertilize the soil.

          Stats provided by the Univ of Pa are obsolete and inaccurate. The corn
          stove used for analysis was not a modern efficient corn stove. The
          comparable energy was erraneously stated to be 100% efficient
          electricity. Grid Electricity is roughly 25% efficient as delivered to
          point of use.



          . --- In cornplace@yahoogroups.com, Ken <ken.meinken@...> wrote:
          >
          > Cornstoves wrote:
          > > Listen up! Ethanol ear money stays home. Money otherwise ear marked
          > > for MidEast tourist and terrorist will stay home to tame the local
          > > economy.
          >
          > Corn takes a lot of energy to produce it: diesel fuel for
          > tractors and dryers, and fertilizer. Where does the fuel and
          > fertilizer come from? OIL
          >
          > Of course _corn_ farmers love the high prices....even if it takes
          breaks
          > the cattle and hog farmers when their feed prices double.
          >
        • yellowcorvette4
          Big oil corps control petro prices. Local corn farms have no control over corn prices. Corn prices that double on the open market only reward the local corn
          Message 4 of 7 , Apr 6 2:35 PM
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            Big oil corps control petro prices. Local corn farms have no control
            over corn prices. Corn prices that double on the open market only
            reward the local corn farm with ten cents more per gallon. To avoid
            volatile market prices, purchase corn directly from the local corn
            farm.
            Beef feeders or horse feeders may also lazily choose to pay market
            price for corn or purchase directly from the local corn farm. Ever
            wonder where corn markets get corn? Most purchase from a corn farm and
            sell for profit. It pays dividends and saves money to know thy
            kneighbor.




            --- In cornplace@yahoogroups.com, Ken <ken.meinken@...> wrote:
            >
            > Cornstoves wrote:
            > > Listen up! Ethanol ear money stays home. Money otherwise ear marked
            > > for MidEast tourist and terrorist will stay home to tame the local
            > > economy.
            >
            > Corn takes a lot of energy to produce it: diesel fuel for
            > tractors and dryers, and fertilizer. Where does the fuel and
            > fertilizer come from? OIL
            >
            > Of course _corn_ farmers love the high prices....even if it takes
            breaks
            > the cattle and hog farmers when their feed prices double.
            >
          • Ken
            ... Actually supply and demand (and gov t policies) control oil/gasoline prices. The government makes more money off of a gallon of gas than the oil companies
            Message 5 of 7 , Apr 7 4:05 AM
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              yellowcorvette4 wrote:
              > Big oil corps control petro prices.

              Actually supply and demand (and gov't policies) control oil/gasoline prices.

              The government makes more money off of a gallon of gas than the oil
              companies do.

              >Local corn farms have no control
              > over corn prices.

              Again, supply and demand. Of course, both supply and demand are
              affected by government policies.
              > Beef feeders or horse feeders may also lazily choose to pay market
              > price for corn or purchase directly from the local corn farm.

              Horses do not eat straight corn. It's very dangerous for them.
            • Cornstoves
              Perfect Competition - Supply and demand control prices at average production cost. Millions of farms approach perfect competition by increasing the corn supply
              Message 6 of 7 , Apr 7 12:03 PM
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                Perfect Competition - Supply and demand control prices at average
                production cost. Millions of farms approach perfect competition by
                increasing the corn supply at the slightest increase in corn price.

                Perfect Monopoly - A single supplier has complete control over
                prices. The local utility is a perfect monopoly. Prices may be tax
                supported or tax subsidized. Big oil has limited competition.
                Energy tax is an easy tax on poor and working class that does not
                affect the rich in the least. The energy tax is paid by each worker
                driving to work daily. The exorbitant gasoline tax hardly affects the
                price of a plane ticket.

                --- In cornplace@yahoogroups.com, Ken <ken.meinken@...> wrote:
                >
                >
                >
                > yellowcorvette4 wrote:
                > > Big oil corps control petro prices.
                >
                > Actually supply and demand (and gov't policies) control
                oil/gasoline prices.
                >
                > The government makes more money off of a gallon of gas than the oil
                > companies do.
                >
                > >Local corn farms have no control
                > > over corn prices.
                >
                > Again, supply and demand. Of course, both supply and demand are
                > affected by government policies.
                > > Beef feeders or horse feeders may also lazily choose to pay
                market
                > > price for corn or purchase directly from the local corn farm.
                >
                > Horses do not eat straight corn. It's very dangerous for them.
                >
              • tennesseecornstoves
                Corn cost less than any other energy source. Corn did cost twice as much most recently in year 1817. Gasoline prices doubled in 3 years. Electricity prices
                Message 7 of 7 , Jun 9, 2007
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                  Corn cost less than any other energy source. Corn did cost twice as
                  much most recently in year 1817.
                  Gasoline prices doubled in 3 years.
                  Electricity prices doubled in select cities in the past two years -
                  Abingdon, Virginia (AEP), Bristol, Va (TVA) for example. Utilities
                  pick one city at a time.
                  OPEC picks heavy travel times like Memorial Day to show miles
                  traveled are not affected by fuel prices. Be wise and afford comfort
                  with corn.
                  No heating fuel cost less than corn. No energy price is more stable
                  than the 200 year history of corn prices.

                  --- In cornplace@yahoogroups.com, "Cornstoves" <haclift@...> wrote:
                  >
                  > Listen up! Ethanol ear money stays home. Money otherwise ear marked
                  > for MidEast tourist and terrorist will stay home to tame the local
                  > economy.
                  >
                  > Ethanol's billion-dollar impact in Missouri
                  > Apr 6, 2007 12:01 PM, By Jason L. Jenkins
                  > University of Missouri
                  >
                  > Missouri ethanol production capacity is expected to reach 500
                  million
                  > gallons in 2008, adding an estimated $1.17 billion to the state's
                  > economy annually, according to a study released by University of
                  > Missouri economists.
                  >
                  > The study, conducted by MU agricultural economists Vern Pierce, Joe
                  > Horner and Ryan Milhollin, accounts for all direct, indirect and
                  > induced economic effects of constructing and operating the state's
                  > ethanol production facilities. The new study updates a report
                  > released in February 2006.
                  >
                  > "This industry is growing so rapidly, we had to revise our study,"
                  > Pierce said. "Last year, our highest projected production capacity
                  > was 350 millions gallons in 2008. Now, it's 800 million gallons in
                  > 2009. It's growing that fast."
                  >
                  > Currently, Missouri ethanol plants produce about 160 million
                  gallons
                  > annually with an estimated economic impact of $522 million to the
                  > state and an additional $43 million generated in federal, state and
                  > local taxes, Pierce said.
                  >
                  > "This is a great industry for Missouri," he said. "We have corn
                  > producers with more money in their pockets, and that means more
                  money
                  > in small towns all over Missouri. It goes beyond just the corn
                  > farmers."
                  >
                  > When annual ethanol production reaches 500 million gallons, an
                  > estimated 177 million bushels of corn would be used to produce the
                  > fuel, increasing the value of the state's corn crop at the farm
                  level
                  > by $76 million, Pierce said.
                  >
                  > "That's $76 million new dollars in the pockets of Missouri corn
                  > farmers," he said. "That level of production also will support more
                  > than 7,700 jobs across the state, generate more than $110 million
                  in
                  > taxes, and produce 1.42 million tons of distillers grain that could
                  > feed more than 1 million beef cattle."
                  >
                  > Other grain producers also would experience increased profitability
                  > as fewer acres are planted to soybeans, wheat and rice, resulting
                  in
                  > higher prices for those crops. However, direct involvement in
                  > agriculture isn't a prerequisite to benefit from ethanol's economic
                  > engine, Pierce said.
                  >
                  > "A large percentage of ethanol plants are being invested in by
                  local
                  > farmers, and they're keeping the profits in their communities,
                  > bringing it back to Main Street and not sending it to Wall Street,"
                  > Pierce explained. "Those profits ripple through the community.
                  > Equipment dealers, feed suppliers, veterinarians, grocers,
                  retailers,
                  > car dealers — they all benefit."
                  >
                  > Increased tax revenues also would allow for more local investment
                  in
                  > schools, roads and other infrastructure. "A 20-year-old man living
                  in
                  > Laddonia, Mo., and working at a factory in Mexico, Mo, will
                  benefit —
                  > even if he doesn't grow corn or work at the ethanol plant," Pierce
                  > said. "It's increasing economic value for the entire community."
                  >
                  > Pierce acknowledged that ethanol's increased demand for corn would
                  > likely push consumer prices for meat, eggs and dairy products
                  higher
                  > as increased livestock feeding costs force producers to reduce
                  their
                  > herds and production.
                  >
                  > "But I'd argue that the cost of paying a little more for a steak or
                  > gallon of milk is worth it if it means I can buy it at my local,
                  > hometown grocery store that's still in business because of the
                  > ethanol plant," he said. "These ethanol plants are going to be
                  built
                  > somewhere in the U.S., and Missouri can capture the value of
                  turning
                  > our corn into ethanol instead of exporting the raw commodity to
                  other
                  > states.
                  >
                  > "There's also still a tremendous opportunity for our livestock
                  > producers to benefit from the use of distillers grains. Livestock
                  > infrastructure wrapping around ethanol plants will grow to take
                  > advantage of these feedstuffs grains, adding more economic impact.
                  >
                  > "Ethanol provides opportunities for new wave of agricultural
                  > diversification off the farm."
                  >
                  > Complete findings of the study, which was funded through an
                  > unrestricted grant from the Missouri Corn Growers Association, are
                  > available on the MU Commercial Agriculture Web site:
                  > http://agebb.missouri.edu/commag/.
                  >
                  > e-mail: JenkinsJL@...
                  >
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