Thursday, June 14

A government-contrived phenomenon

Referring to Kimberley A. Strassel's article also cited below, Tom Philpott adds,
The corn-based ethanol boom, a completely government-contrived phenomenon, never had a shot at significantly reducing petroleum use. By all accounts, its energy-saving potential over gasoline is thin -- if not imaginary. Corn ethanol has always been a fake -- and dramatically expensive -- stand-in for real energy-conservation policy.

Although I support any and all efforts to halt the runaway train that is corn ethanol, I fear that the backlash plays into the hands of Tyson and its peers, who hate ethanol because it interferes with the business model of feeding cheap corn to confined animals.

They may well get their wish. Last fall, spurred by high corn prices, U.S. farmers scrambled to plant corn anywhere they could -- on idle land, on land devoted to other crops like soybeans. This summer, provided there's no major weather disaster, they will likely harvest the largest corn crop in U.S. history.

If Congress pulls back support for ethanol, the corn price will likely tumble. Lower prices will mean a windfall for feedlot operators like Tyson -- and will likely spur a slew of government commodity payments to corn growers under the farm bill.

We'll be back where we started: with our government using our tax dollars to prop up corn production.

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