E.U. ethanol tariff hits home

  • Article by: Staff AND wire reportS
  • Updated: February 19, 2013 - 9:35 PM

U.S. producers are worried about what happens when U.S. ethanol sold in Europe becomes more expensive.

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simplicity1Feb. 20, 1312:18 AM

This is a gimmicky welfare industry anyway. It has driven up the price of both food and fuel. I will be happy when the are gone and so will my car. I hope the state has forced the purchase of insurance to clean up the ground... heavy industry and polluted sites are a big part of our past.

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lars1074Feb. 20, 13 7:19 AM

There is no subsidy for ethanol anymore, unlike oil. How does ethanol raise the price of fuel when it's a lot cheaper than gasoline? How does fermenting corn to make alcohol cause all this pollution? About one third of the corn ends up as distillers grain which is a high quality feed and corn oil, so what's so polluting here? Same process liquor uses.

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unicorn4711Feb. 20, 13 8:36 AM

"The duty of 62.30 euros ($83.20) a metric ton aims to punish U.S. exporters of ethanol for allegedly selling it in Europe below cost, a practice known as dumping." How could they sell it below cost and make money?

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yardboyFeb. 20, 13 8:38 AM

Oh I feel so bad, ethanol has been a complete joke from day one. We burn up our food supply in the name of helping the environment, a fictitious story that has been shown to have no real environmental benefit. So we can all pay much much higher food prices driven by yearly record grain prices. It has been a great deal for land owners as land prices soar & crop farmers have yearly record profits but not for the U.S. consumer.

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concernedduhFeb. 20, 13 8:49 AM

European protectionism is no different than US protectionism. Both are good example of socialism in action and both force consumers (citizens) to pay more for products, so they can use the tariffs to subsidize their inefficient governments and unions.

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srlarsonFeb. 20, 13 8:55 AM

Why can't people educate themselves before commenting.....ethanol has no subsidies, it's existence is needed as an MTBE replacement (octane boost), for every bu of corn (about 56 lbs) about 42 lbs of DDG is produced(Feed), the corn used is not in our primary food...it is feed stock for animals. Yes additional demand has helped support corn prices....but we have seen our exports drive that to a greater % (China and India go on buying sprees when corn price falls) and the drought has tightened supplies this year. Now all that aside, the Renewables group complaining about a tarrif when we have had one in place up until recently from Bazil, just seems silly. Produce when Margins are good, idle plants when crush margins get squeezed. High Farm prices have been an awesome thing for rural america, our economy hasn't noticed the downward swings like urban america. Farmers have money, farmers spend money....good for everyone. But please inform yourself before you spout off.

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srlarsonFeb. 20, 13 8:57 AM

Why can't people educate themselves before commenting.....ethanol has no subsidies, it's existence is needed as an MTBE replacement (octane boost), for every bu of corn (about 56 lbs) about 42 lbs of DDG is produced(Feed), the corn used is not in our primary food...it is feed stock for animals. Yes additional demand has helped support corn prices....but we have seen our exports drive that to a greater % (China and India go on buying sprees when corn price falls) and the drought has tightened supplies this year. Now all that aside, the Renewables group complaining about a tarrif when we have had one in place up until recently from Bazil, just seems silly. Produce when Margins are good, idle plants when crush margins get squeezed. High Farm prices have been an awesome thing for rural america, our economy hasn't noticed the downward swings like urban america. Farmers have money, farmers spend money....good for everyone. But please inform yourself before you spout off.

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bluemocoFeb. 20, 13 9:03 AM

@lars1074 -- We use lots of fuel to produce Ethanol (farm equipment, transportation, etc.) and huge amounts of water are required at the ethanol plant. The process is not at all 'environmentally friendly,' and don't even get me started on the whole 'using food as fuel' discussion. Ethanol may be cheaper than gasoline, but it also has substantially less energy content. Thus, the lower energy content means your car will get fewer MPG on ethanol than it would on straight gasoline. It's really that simple. Come on over to one of our Twin Cities SAE meetings sometime, and I'll introduce you to 50 automotive engineers who can share more details. Better yet - compare your car's MPG on a tank of E85 vs. straight non-ethanol gasoline. See for yourself...

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unicorn4711Feb. 20, 13 9:08 AM

@lars1074 "How does fermenting corn to make alcohol cause all this pollution?" Seriously, do you work for the corn industry? You come across as someone who receives a big fat paycheck to stay ignorant of how the world works. Only someone not paying attention at all would not understand that it isn't the fermenting of corn that is the problem but rather the way in which corn is harvested in the United States. First, they plant genetically modified corn across the state. It's modified so it can live when they dump herbicide and insecticide on it to kill everything that isn't the modified corn. Next, they pour on fertilizer. Then, they spray the fields with some of the strongest herbicides and insecticides ever known to man. Oh yeah, all the land is tiled off in order to drain the fields and push all of the runoff to our rivers and lakes. The increase phosphorus levels in our rivers and streams? That's a long term problem everyone has to deal with. But the short term profits a few in the industry collect drive the policy. Then, Monsanto and others sue the heck out of anyone trying to grow non-modified corn seeds if so much as a single kernel of a genetically modified seed to which they own the intellectual property floats over to his field. It doesn't matter that its actually impossible to keep the modified corn OUT of your fields, even when you try. Then, the corn doesn't just go to make products for human consumption, a lot of crop goes to animal feed (where the animals are loaded up with drugs) and ethanol production. The tax payer SUBSIDIZES this system to the tune of about $22 dollars per acre for corn. Around $10 billion dollars a year for all the staple crops like corn and soy. Yeah, no pollution there. Completely sustainable, nutritious system. Completely clean, renewable industry. The Europeans are completely in the wrong for not wanting that messing up their economy. The studies the industry pays for say genetically food products are safe. The regulatory bodies in this country don't work for you: They work for whomever is paying the most, which is industry. The Europeans, those snobs with their stinky cheeses, don't allow much for genetically modified food products. They call them Frankenfoods and tell their children nightmares of what Americans eat for breakfast. The Europeans have less cancer and live longer.

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unicorn4711Feb. 20, 13 9:16 AM

@srlarson "High Farm prices have been an awesome thing for rural america" High corn and soy prices have been awesome for large scale farmers who take advantage of state and federal subsidies for every acre they plant. They've been devastating for family farms, more traditional farming methods, organic farming, and diverse fields. Despite the high end price for organic crops, its hard to get everything from loans to crop insurance.

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