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Tractor Talk Discussion Forum

OT: corn based ethanol?

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Midwest redneck

09-02-2005 02:17:17




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Now that those gas prices are at $3.30/gallon--at least in Michigan thats where they are. Is it economical to make corn based ethanol? I dont know if farmers can make money selling it as fuel instead of feed corn but I thought I would ask. Fill me in here.




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dhermesc

09-02-2005 09:39:46




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 Re: OT: corn based ethanol? in reply to Midwest redneck, 09-02-2005 02:17:17  
According to the front page of the Grass & Grain on Aug 8th the US hasn't built a new refinery since 1977 and has CLOSED 56 refineries in the same time period. Grain based fuel production has tripled since 2000.

Neigh sayers claim that growing grain causes pollution, and that it takes more fuel refine grain then it produces. I guess my grandfather didn't know that when distilled his own alcohol back in the 30s, because he ran with very little purchased fuel for years during the depression. The only other fuel source he had was his 12 children.

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HuskerMedic

09-02-2005 06:02:58




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 Re: OT: corn based ethanol? in reply to Midwest redneck, 09-02-2005 02:17:17  
I was considering looking at a flex fuel vehicle (that can run on 85% ethanol). But with the disproportionate rise in the price of E85, it appears all the "flex" I would get out of the vehicle is the flexibility to decide who gets to gouge me-the oil company or the middle-man buying and blending the E85 (I doubt very much the farmers or distillers are seeing the extra $$ being charged for E85).

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JT

09-02-2005 02:45:43




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 Re: OT: corn based ethanol? in reply to Midwest redneck, 09-02-2005 02:17:17  
You would think so, but here in Illinois, gas is $3.29 a gallon, E85 is $2.69, was $2.06 on Wednesday, something is not right here???



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mad

09-02-2005 07:18:34




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 Re: OT: corn based ethanol? in reply to JT, 09-02-2005 02:45:43  
I recently wrote an editorial for my local paper on this issue. E-85 contains 15% gasoline so the price increases should only be 15 % of the increase of gas. And yet the prices jump up in tandem. I argued that corn has dropped in price all summer so ethanol should actually be decreasing in price since corn makes up 85 % of the fuel. I called my state corn board and they said that I was exactly right and that they felt the filling stations offering E-85 were taking advantage.IE-price gouging. I have several ethanol plants around me and the ethanol leaving their facilities is selling for $1.30 to $1.59.per gal. OK let's do some math. To make up a gallon of E-85. $1.59 times 85 % is $ 1.35. Let's say gasoline today is $ 3.49. $ 3.49 times 15 % is $.52 cents.. .52 +1.35 = $1.87 per gallon for E-85 plus shipping costs. My state corn board said I am dead on with my figures and yet we can't get anyone to take notice of what is going on. I was told to go to a government web site called gaswatch.org.gov to report price gouging but it has not allowed me to log on.

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Paul in Mich

09-02-2005 08:32:41




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 Re: OT: corn based ethanol? in reply to mad, 09-02-2005 07:18:34  
Mad, YOu omitted one important element in your math. Fuel as it leaves the refinery or E-85 leaving the distillery does not have all the taxes assessed. Many of the taxes (highway taxes in particular) are assessed at the pump, which reflects somewhat on the discrepency of cost versus price.



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