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New Study Says Ethanol Industry Doesn’t Need Federal Support
By Mr Ethanol | September 20, 2007
CattleNetwork:
The ethanol industry is booming and does not need large federal supports, according to a new study by Thomas Elam, agricultural economist and president of consulting firm FarmEcon.com.
“Ethanol is one of the most profitable enterprises in the United States today, but unfortunately a high percentage of those current profits come not from the marketplace, but from the federal treasury,” Elam said in a news release. “Increased energy prices make it possible for the ethanol industry to thrive on its own.”
According to Elam’s study, federal supports, when fully implemented, will drive up the cost of corn and other grains by $34 billion per year. The ethanol boom is driving up the cost of food production, and could eventually cost a family of four about $460 a year in higher food costs, he said.
Federal supports are severely distorting crop prices while adding little, if anything, to the stated goals of the renewable energy program, Elam said. The ethanol program is also increasing the federal outlays and has very little impact on U.S. dependence on foreign oil, he wrote.
Topics: Agriculture, Ethanol, Industry, News, Research |
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