How much is ethanol costing the US

How much does ethanol cost the US, that’s the question on a post from Say Anything. just to remind us the author spells it out like this…

The other think that’s remarkable in this article is just how much the ethanol subisdy is costing us. When we fill up with a gallon of ethanol it’s costing the taxpayer (you and me) $1.90 in addition to the $3.40 we’re paying the friendly guy inside the pump. Plus we’re paying in higher food prices as well


I’m going to ask him if he’s for ethanol from sugarcane… that should be interesting

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5 Responses to How much is ethanol costing the US

  1. The Whistler 30 April, 2008 at 6:45 pm #

    Thanks for the link. By and large I’m for open markets and free choice.

    On the other hand I don’t see just shutting off the ethanol program like a spigot as that would cause untold damage to the ag industry. The disruption likely would wind up making the problems worse.

    I think slowing down would make a lot of sense. The ag industry WILL be able to ramp up production to keep up with worldwide demand as well as a fair piece of our energy needs.

    You guys are the experts, but doesn’t sugar cane make more economic sense than corn based ethanol. Also the switch grass technology sounds quite promising.

  2. Biofuelsimon 1 May, 2008 at 10:15 am #

    Sugar seems to make more economic sense at least in Brazil. I think there may be too much sugar in the world I also think that the sugar regime is pretty complex to unravel enough to make it a viable feedstock any time soon.

  3. Federico López-Medel 23 May, 2008 at 2:02 am #

    Maybe is important to build border wall, but is more important to buil ethanol plants in Mexico, because the ethanol cost in USA (Raw material & Energy production) is 3.44 US Dollar per Gallon. In Mexico is 1.893 US Dollar per Gallon. If you are looking to do business and take a good return money, call me.

    Federico López-Medel

  4. Simon Robinson 23 May, 2008 at 10:57 am #

    Frederico, hats off for your direct approach. I guess if you become very successful in making ethanol in Mexico, the US will impose tariffs similar to those on Brazilian ethanol… Would that be fair?

  5. David B. Benson 27 May, 2008 at 11:20 pm #

    I’ll try for a third time:

    s-w-e-e-t s-o-r-g-h-u-m

    may provide a suitable ethanol feedstock in most of the U.S. and parts of Canada. Very similar the sugarcane but doesn’t not require a semi-tropical climate.

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