Corn and soybean prices closed at record highs this week.
Corn prices are now up almost 70 percent from June, and soybeans are up nearly 40 percent.
Meanwhile, a handful of economists are calling for a temporary suspension of the US ethanol mandate in an effort to alleviate high corn prices.
A new study that was just released from three agricultural economics at Purdue University indicates that even a partial relaxation of the mandate could reduce corn prices by up to 20 percent next year. Unfortunately, however, relaxing this mandate will do little to affect prices this year. And that’s just how the government likes it.
Oh, sorry, Too late. Nothing we can do now.
What a scam!
Here’s the problem. . .
Even if they did decide to relax the ethanol welfare con, we must still account for the fact that refiners have already prepared to blend ethanol. Switching away from ethanol is not necessarily something you can do with the flip of a switch.
Of course, now we’re seeing all kinds of options involving waivers and renewable id credits; the hot button tools of bureaucracy that keep the machine running while distracting taxpayers from the amount of money being sucked out of their paychecks.
Looking for some common ground that keeps policy makers happy and subsidy dollars intact, they’re doing everything they can to make sure Big Ag keeps getting its tribute. And that means twisting and turning and doing any kind of magic act they can come up with to ensure that ethanol cash cow keeps on producing.
Why every taxpayer isn’t rioting in the streets over this is beyond me.