November 19, 2010

Doubling Down On Economic Insanity

Consider how far from free markets and just plain common sense we have come in the pursuit of "green energy". Not only are bio-fuels being subsidized with tax payer monies directly and indirectly through mandates, we are now doubling down with direct payments to farmers. Nothing against farmers, but they must be laughing all the way to the bank-with our money.


USDA to match farmers' cellulosic feedstock income

SIOUX FALLS, S.D. (AP) - Farmers supplying the nation's largest biofuels producer with corn crop residue that can be converted to cellulosic ethanol can double their income under a new USDA program.

The agency has finalized the pilot Biomass Crop Assistance Program, which will help farmers get matching payments for delivering nonfood feedstocks to cellulosic ethanol plants.

Sioux Falls-based Poet plans to build an advanced biofuels plant next to its corn ethanol facility in Emmetsburg, Iowa.

The company has been testing the feedstock delivery system this fall, paying farmers about $40 a bone-dry ton for round bales containing corn cobs, leaves and husks. Farmers can then take their scale tickets to a Farm Service Agency office and double their money.

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