Buy My Cornpile

|

Finally, a bailout for ethanol producers. Why not? Iowa's presidential caucus is earlier than the Michigan primary, anyway.

"Some plants are under pressure because they've been speculating on corn," [Agriculture Secretary Ed] Schafer told reporters after speaking at the World Food Prize symposium breakfast.

The secretary said the department wouldn't buy or sell grain or cover trading losses. Rather, he said, money could come from the USDA's Rural Development office, which can provide up to $25 million to keep rural businesses operating.

The idea isn't getting a lot of attention in the final weeks of a presidential race, although Rep. Jeff Flake has spoken out.

"The federal government's ethanol policies have driven up the price of corn," said Flake. "But rather than reforming the policies that have caused a spike in corn prices, the federal government wants to bail out ethanol producers who speculated on the price of corn. Only the U.S. Department of Agriculture could dream up a policy like this."

Flake said tax breaks and credits for ethanol producers should be repealed. "The high price of corn has had a ripple effect over our entire economy. Instead of trying to bail out every industry hurt by it, the federal government needs to take a serious look at reforming our ethanol policies," said the East Valley Republican.

I realize this is an executive branch program, and this is unrelated, but: I'm not looking forward to this lame duck Congress. I don't think there'll be a lot of agreement with Flake.

Advertisement

NEXT: Obesity vs. Political Apathy: Obesity Wins!

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. Flake has been on a roll lately.

  2. They should pass flexfuel mandates, end the subsidy, and allow Brazil to sell us ethanol.

    I mean, really. Saudi Arabia and venezuela get to sell to us with no tariff, but the Brazilians need to be kept down?

    We’d have cheaper gas and less dependence on bad people.

  3. Let them eat jonnycake!

    Kevin

  4. TallDave,

    Fuck you. Most cars don’t run well on flex fuel. Mine included.

  5. Why isn’t Flake running for president? If I voted, I’d vote for him.

  6. Alcohol from corn may the most inane government boondoggle of my life. It sure is maddening to see it still has legs.

  7. Fuck you. Most cars don’t run well on flex fuel. Mine included

    Um. I think you’re a bit confused. Flexfuel means you can use either.

    The mandates are for new cars to be able to use alcohol fuel — or regular gas if you want to keep using that. When oil is cheap, use oil. When oil is expensive, use ethanol.

  8. Ahhhhhhh . . . I believe you are correct. My apologies. No real harm meant.

  9. “Fuck you. Most cars don’t run well on flex fuel. Mine included.”

    That’s okay. You can get a subsidy too! Subsidies for everyone!

  10. “Alcohol from corn may the most inane government boondoggle of my life. It sure is maddening to see it still has legs.”

    You take that back you son of a bitch!

    (Downs bourbon)

  11. You take that back you son of a bitch!

    (Downs bourbon)

    Well played, sir.

  12. TallDave,

    They should pass flexfuel mandates, end the subsidy, and allow Brazil to sell us ethanol.

    So, lemme get this straight, you want to pay me to install the same EFI systems on my 1972 Charger and the [yet to be purchased] Dodge car hauler even though I was going to do that anyway?

    I demand a magic pony too!

  13. Some of Mike’s Bourbon will do though . . .

  14. They should mandate that cars run only on bourbon. Then they could arrest your car for drunk driving.

    (rimshot)

  15. Mike,

    Only the crap bourbon. No Blantons, Bookers, or Basil Hayden wasted on cars.

  16. Guy,

    72′ Charger. Freakin’ sweet! I got a 97′ Z28 and I crave a 67′ Camaro.

  17. Really, no response from Hit & Run yet about Greenspan’s supposed flaw in free markets? People assume Greenspan is an economic wizard. They’re going to assume this means the end of free markets idealogy.

  18. I want a drunk pony.

  19. People assume Greenspan is an economic wizard.

    Who, exactly, is “people”?

  20. Elemenope,

    “What do you mean, you people?!”

  21. Blue,

    If you have to get your pony drunk . . .

    BTW, I may have found a cool truck to turn into a car hauler. Not a MOPAR, but still cool.

  22. Greenspan evidently determined that no, in fact, he had not done enough damage during his tenure as Fed chairman.

    Remember when this idiot used to call himself a libertarian?

  23. “Some plants are under pressure because they’ve been speculating on corn,”

    Some ‘plants’ are under pressure ’cause of corn speculating. That’s funny, that’s really… that’s… nevermind.

  24. Mike,

    When did he call himself libertarian? I know that he went out of his way to distance himself from Ayn Rand.

  25. Really, no response from Hit & Run yet about Greenspan’s supposed flaw in free markets? People assume Greenspan is an economic wizard.

    Greenspan has completely miscalculated. But not how he thinks he miscalculated. Greenspan underestimated the power of moral hazard.

    Bailouts all around. Proceed to invest and spend as you will.

  26. When did he call himself libertarian? I know that he went out of his way to distance himself from Ayn Rand.

    He did that after years of being in her inner circle, going to the little though meetings at her apartment in NYC and all of that?

    Or perhaps he was cast-out! [diobolical laugh]

  27. You take that back you son of a bitch!

    (Downs bourbon)

    You get government bourbon? Damn, I though you could only get cheese.

  28. Guy,

    Well she was known to tolerate no dissent in the ranks.

    Buddy Holly,

    Also orange juice and powdered milk. I hear that they now give real cinnamon toast crunch.

  29. doom
    Dooom
    DOOOOM

  30. David Weigel,
    Thanks for reminding me of Buy my Shitpile.

  31. Since this thread has been jacked to talk about cars, (threadcarjacked?) anyone who’s interested in a ’70 Corvette should look here.

  32. BP,

    Cool, but I am loyal to MOPAR. Unless I find something else cool, like that IH truck, as long as it is not a ford or GM, or ‘foreign’.

    Otherwise, ‘vettes are fine 😉

  33. Yet another offensive in the War against Tequila.

  34. Cool, but I am loyal to MOPAR. Unless I find something else cool, like that IH truck, as long as it is not a ford or GM, or ‘foreign’.

    Reading the news, it would appear that Chrysler, Dodge, Plymouth, and Jeep will be GM nameplates before the end of the year.

  35. That flatbed would be just the thing for a Charger, if you soup up the hydraulics so it will fling the Charger into the Grand Canyon. Or possibly just “flyswatter” the car flat, in the driveway.

  36. Look, all we have to do to kill ethanol is find some way to use it to make drugs
    It’s really very simple

  37. We need some youtube footage of eight-year-olds huffing the exhaust pipe of Daddy’s flex fuel Suburban.

  38. Ethanol, you say? I’ll buy all of it. Right now.

  39. A guy named Flake is talking about corn and not one cereal joke?

  40. Otherwise, ‘vettes are fine 😉

    Very fine indeed. I’m going to miss it thie winter. Not much point in driving with the top up though.

  41. Buddy Holly…
    Thank you, needed the laugh. It’s been a little too serious round here.

    I don’t care if gas prices are comming down. I still laugh at both detroit gas hogs AND hybrids

    1.5 litres of fury

    shiny

    Ah but what is it?

    Tada!

    Ok, corvettes deserve recognition but no quarter given..

    Maybe more seat time, less chrome.

  42. I realize this is an executive branch program, and this is unrelated, but: I’m not looking forward to this lame duck Congress. I don’t think there’ll be a lot of agreement with Flake.

    The lame duck Congress? You should worry about the next Congress and President as well, since it looks like it’ll be even more pro-ethanol (and pro-ag subsidies) than the last. But of course you’re not anti-ethanol enough to change your presidential vote on it. No one is. Plenty of corn farmers will vote for whoever is pro-ethanol, but speak out against it and you’ll get some occasional appreciative notices at the Reason debate live chat and elsewhere, but no one who wasn’t going to vote for your before is going to vote for you now based on it.

    They should pass flexfuel mandates, end the subsidy, and allow Brazil to sell us ethanol.

    So you’re a McCain supporter then, TallDave? Or just agree with him on this issue?

  43. 72′ Charger. Freakin’ sweet! I got a 97′ Z28 and I crave a 67′ Camaro.

    What’s this, alternate timeline day? I remember back in 84′, when Apple-prime came out with the Granny Smith. What a computer!

Please to post comments

Comments are closed.