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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:]

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

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Get used to it
By slawless on 11/19/2012 12:40:51 PM , Rating: 3
This is what you voted for America. You are about to learn what it is like to live under a socialist dictatorship. All new laws governing your life will be dictated from the executive branch. (executive order and regulatory agency mandates)Congress has the power to stop it, but they can't even pass a budget. Freedom was nice while it lasted.

RE: Get used to it
By Sivar on 11/19/2012 12:50:35 PM , Rating: 2
Just like last time?

RE: Get used to it
By Nutzo on 11/19/2012 1:49:34 PM , Rating: 5

You're right, elections have consequences.

Since the election Obama has already canceled drilling permits auctions on millions of acres.
The EPA is forcing 50% more ethanol in Gasoline.

Now you are going to pay a lot more for gas, beef and almost everything else.
You poor people driving 10+ year old cars are going to have gas lines leak, and engine seal failures.
I can easily afford to buy a new car (even though I currently drive a 10 year old car), so I’ll just replace my car before this happens. I also live close to work and don’t use much gas, so it won’t affect me much.

So the rich will continue to get richer, and the middle class and poor get poorer, which is always the result of more government. The rich can always afford to work around the higher taxes/regulation, the poorer you are the less flexibility you have, so the poorer you will get.

RE: Get used to it
By YashBudini on 11/19/2012 2:42:42 PM , Rating: 2
I love how you fail to address the fact that E15 would have been equally shoved down your throat with the other guy, if not more so. Lobbyists don't see parties, they only see green. To be more upset with one puppet over the other is a practice in futility.

The results you get are based on the divide and conquer techniques effectively screwing up the middle class. That's what you get for staying on the 2 party merry-go-round.

RE: Get used to it
By Spuke on 11/19/2012 3:11:10 PM , Rating: 2
To be more upset with one puppet over the other is a practice in futility.
I don't always agree with you but you are on a roll today.

RE: Get used to it
By Spuke on 11/19/2012 3:20:33 PM , Rating: 2
So the rich will continue to get richer, and the middle class and poor get poorer, which is always the result of more government.
This is not entirely true and part of the divide and conquer that Yash mentioned. The poor and the middle class are not getting poorer, they're (our) "growth" is essentially flat. More flat for the poor and a slight rise most of the middle class. Now PART of that middle class (starting at a household income of $90k a year) IS increasing their wealth along with the rich and a chunk of the poor moved to the middle class. We are being fooled into fighting it out with other citizens over pure BS. This info is in plain sight using government census data. Most of which has already been compiled into easy to read formats. Yet no one in the government will come out and give you the real deal. They would rather fool you into taking a chunk of money from your neighborhood coffee shop (you do you think makes $250k a year?).

RE: Get used to it
By Spuke on 11/19/2012 3:22:16 PM , Rating: 2
(you do you think makes $250k a year?)
Jesus Christ WHO do you think makes $250k a year?

RE: Get used to it
By YashBudini on 11/19/2012 3:37:28 PM , Rating: 2
Lots of businesses have many factors that make $250,000 in one year not a big deal. They may have endured several flat years, even several years in the red. There are also times businesses are cash poor. I've seen IGA stores that were very successful close under such conditions.

It sounds like a lot, but factor in how expensive many places are, start up costs, etc. Doctors almost certainly stay in the 6+ figure territory, but look at what they owe when they start.

RE: Get used to it
By Spuke on 11/19/2012 3:54:37 PM , Rating: 2
No disagreements from me.

RE: Get used to it
By Nutzo on 11/20/2012 12:25:31 PM , Rating: 2
Actually middle class income has DROPPED around 4% in the past 4 years. Add in the higher costs for gas & food, add the drop in investments & home values, and the middle class is much worse off.

RE: Get used to it
By YashBudini on 11/19/2012 3:25:39 PM , Rating: 2
A comedian said it best a few months ago. He was asked which party he supports, and he said neither. When asked why his response was

I don't like being 50% wrong 100% of the time.


What I try to do here mostly is to get the biggest stone throwers to see they live in a glass house, with a cardboard foundation, and a tissue paper roof.

RE: Get used to it
By Ammohunt on 11/19/2012 6:26:41 PM , Rating: 2
So the rich will continue to get richer, and the middle class and poor get poorer, which is always the result of more government.

Then the previously wealthy or previous middle class get pissed off..

"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein

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