backtop


Print 108 comment(s) - last by sweetca.. on Dec 1 at 7:51 PM

Big corporate corn farmers celebrate major win, share prices in corn corps. inch higher

Battered by a drought, and hit a second time by the U.S. government's artificial inflation of corn prices, many small livestock farmers were desperately hoping that the Obama administration’s and its appointed leadership at the U.S. Environmental Protection Agency (EPA) would agree to a temporary waiver on blending requirements of ethanol in vehicles.

I. Big Corn Gets a Helping Hand from the Obama Admin.

The EPA on Friday echoed the sentiments of big corn special interests saying it found no evidence that "significant harm" would be caused by not granting a waiver.

The decision came as somewhat of a surprise.  Many sources had expected the Obama administration to instead punt on the issue; the decision to side with the well-heeled special interests to push a program that is unpopular and likely will now cost American jobs was unexpected.

The auto industry has also vigorously opposed the EPA's decision to bump ethanol blending requirements to 15 percent.  They argue that the higher blend will ruin the engines of older vehicles, increasing emissions and forcing consumers to pay for expensive repairs or abandon their vehicles.

Obama bribery wide
Obama and Bush both backed big corn special interests. [Image Source: Politically Incorrect]

The EPA has alleged that it knows the science behind fuel blending better than the engineers who make cars, essentially calling the automakers liars.

The decision will also impact consumers, as ethanol provides less gas mileage in traditional engines that gasoline.  In other words, unless gas stations start charging less at the pump (which seems rather unlikely) consumers will be paying the same amount per gallon, for less equivalent fuel.

Even environmentalists are outraged at the Obama administration, given that ethanol has been shown to not only waste energy, but also increase carbon emissions.  Comments, Michal Rosenoer, biofuels policy campaigner at Friends of the Earth, to The Detroit News:

If the worst U.S. drought in more than 50 years and skyrocketing food prices are not enough to make EPA act, it falls to Congress to provide relief from our senseless federal support for corn ethanol.  The RFS is a broken policy — rather than giving us clean energy, it's incentivizing biofuels like corn ethanol that are exacerbating our economic and environmental problems.

Congress needs to cut corn ethanol from the RFS entirely to protect the economy and the environment from this destructive and dirty fuel.

But despite the united opposition, the Obama administration appears resolute in following its predecessor, the Republican Bush administration, in choosing to side with the big corn special interest groups.

II. EPA to Small Farmers: "Deal With It"

Gina McCarthy, assistant administrator for EPA's Office of Air and Radiation fires back at the critics, commenting, "We recognize that this year's drought has created hardship in some sectors of the economy, particularly for livestock producers.  But our extensive analysis makes clear that congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact."

In other words, the EPA admits it recognizes that farmers are struggling, resorting to desperate measures like feeding their livestock candy waste; but when it comes to bucking a key special interest's agenda the EPA's answer to farmers is basically "tough luck".

Farm drought
EPA claimed to be sympathetic to farmers, but refused to help them with a waiver.
[Image Source: US News]

Over 200 members of Congress, eight state governors, and numerous college professors sign a letter arguing that the blending targets would indeed have a dire impact on farmers.

So who wins?  The biggest winners are the corn and ethanol industry, particularly the growers, who benefit the most from the artificial inflation of corn prices.  Many of these growers are not even family owned, but rather are large corporate farms run by deep-pocketed entities like Archer Daniels Midland Comp. (ADM) and ConAgra Foods, Inc. (CAG).  Indeed, both companies saw a rise in share prices following the EPA's decision.

corn profits
Big corn donates deeply to federal politiicans, who in turn reward it with billions in subsidies.
[Image Source: Agriculture.com]

So the word is official -- the U.S. will continue to manipulate prices in the fuel department, despite the cost to consumers, the environment, automakers, livestock farmers, and U.S. jobs.  That's bad news for most -- unless you happen to be an Archer Daniels Midland shareholder.

Source: The Detroit News



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Wait
By dgingerich on 11/19/2012 12:13:58 PM , Rating: 3
Ha! He's working a deal with many of them for his kingship.


RE: Wait
By JasonMick (blog) on 11/19/2012 12:38:31 PM , Rating: 5
quote:
Ha! He's working a deal with many of them for his kingship.
When the two ruling party candidates cumulatively require $1B USD in "donations" to get elected, take two guesses who they're going to be serving -- you or special interests.

It's quite charming how America is constantly chastising China, in many ways the American political system is like a more clever version of China's -- both ruling parties actively work to exclude and suppress other political voices. And they "debate" on meaningless moral pandering points, while accepting money and helping many of the same special interests (case and point, ethanol policy was put in place by Bush, continued by Obama).

And of course, both parties largely support manipulation of the economy, through various means -- drug regulation, energy policy, patents, etc.

America's political system is a lot like China's except its politicians are clever enough to at least given citizens the illusion of freedom and choice. It's kind of like being stuck in the Matrix.


RE: Wait
By Jeffk464 on 11/19/2012 12:45:39 PM , Rating: 1
Yes, if only Canada could invade and replace our government with their own. :)


RE: Wait
By Flunk on 11/19/2012 1:23:24 PM , Rating: 2
That's not going to happen, our government would never get away with declaring war on the USA. They're be out immediately, that's how our political system works. Do something really stupid and then an election follows.


RE: Wait
By Ammohunt on 11/19/2012 6:20:07 PM , Rating: 2
Bring Back Bacon!


RE: Wait
By ebakke on 11/19/2012 2:26:22 PM , Rating: 2
quote:
America's political system is a lot like China's except its politicians are clever enough to at least given citizens the illusion of freedom and choice. It's kind of like being stuck in the Matrix.
I disagree. I think our politicians are more clever because they've found a way to convince the general public to voluntarily relinquish their freedom/choice, and to hand over their power.

In China, the citizenry doesn't have the power in the first place.


RE: Wait
By YashBudini on 11/19/2012 2:45:36 PM , Rating: 3
quote:
If voting could change the system it would be outlawed.

Canadian graffiti from years ago.


RE: Wait
By ebakke on 11/19/2012 3:31:17 PM , Rating: 2
quote:
Stupid people write stupid things while damaging others' property.
Quote from me. Today.


RE: Wait
By YashBudini on 11/19/2012 3:38:52 PM , Rating: 2
Ability to stay on topic - 0


RE: Wait
By ebakke on 11/19/2012 3:42:14 PM , Rating: 1
Oh... your graffiti post was a legitimate attempt to add some kind of value to the discussion? I must have missed it. My bad.

So, what was your point exactly? Were you disagreeing with me and attempting to provide some evidence that the US is equivalent to China?


RE: Wait
By kamiller422 on 11/19/2012 3:25:12 PM , Rating: 2
I guess I am part of the special interests crowd as I donated to some campaigns.


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki