rudis dot net

[REF: Ethanol's Boom Stalling as Glut Depresses Price]

But companies and farm cooperatives have built so many distilleries so quickly that the ethanol market is suddenly plagued by a glut, in part because the means to distribute it have not kept pace. The average national ethanol price on the spot market has plunged 30 percent since May, with the decline escalating sharply in the last few weeks.

“The end of the ethanol boom is possibly in sight and may already be here,” said Neil E. Harl, an economics professor emeritus at Iowa State University who lectures on ethanol and is a consultant for producers. “This is a dangerous time for people who are making investments.”

While generous government support is expected to keep the output of ethanol fuel growing, the poorly planned overexpansion of the industry raises questions about its ability to fulfill the hopes of President Bush and other policy makers to serve as a serious antidote to the nation’s heavy reliance on foreign oil.

This is a article of gratitude:

Thank You! President Bush for one of the worst energy policies in the history of America and trying to take the easy way out of a complex situation.

Thank You! Farmers of America who traded good farming practices for dollar signs, knowing we'd be there to bail you out.

Thank You! Farmers for contributing to wheat and other crop shortages because you thought we could all live on corn and ethanol.

Thank You! Farmers & Bush for executing so well on your ill-conceived plan that you drove prices up for so many other products that a large number of folks in America cannot afford them anymore (luxuries like beef, milk, ...)

Thank You! President Bush for actually solidifying our reliance on foreign oil rather than incenting real innovation in the energy and transportation industries.

Thank You! Congress for rubber-stamping the subsidies for our sheep-like, gold-rush farmers instead of challenging the status quo and actually *doing* something.

And, finally,

Thank You! America for electing and keeping these folks in power. You may have received what you deserved, but the rest of us are impacted as well.

Foreign Policy magazine has a blog (obvious if you've ever looked to the right block column at all) and one of their recent entries lends some credence to my milk post earlier in May.

All but the very rich are going to feel the food cost crunch and it's going to hurt. I suspect this is one reason we now have Diet Coke Plus, so the kiddies (and adults) can get their vitamins in a non-dairy, cheap beverage.

As the FP post suggests, why can't I have some of my tax dollars back so I can afford the outrageous food prices. Why am I subsidizing farmers who clearly are gouging consumers?

While it may still wind up costing more in the end, you can help stick it to these multinational, multi-billion dollar farming outfits if you:

• buy local
• buy organic
• grow your own (if you can), and
• consume less

Writing your state and federal representatives would be a prudent item to add to your to-do list as well.