Follow this blog:
RSS

Corn ethanol subsidies skate past budget battle

By | April 8, 2011, 3:22 PM PDT

Corn ethanol subsidies remain as high as an elephant's eye.

Corn ethanol subsidies remain as high as an elephant's eye.

Austerity is the new watchword in Washington, but expensive corn ethanol subsidies — long criticized as being economically dubious and even environmentally harmful — are still moving forward.

The U.S. Department of Agriculture is slated to being issuing grants and loan guarantees for gas stations to install corn ethanol ready pumps, USDA Secretary Tom Vilsack said today.

The pumps would fuel a growing fleet of vehicles that run on E85, an 85%-ethanol blend of gasoline. There are already over 2,335 E85 pumps installed in at U.S. service stations.

Coincidentally, most of the pumps are located in the Midwest, a region that is economically dependent on corn cultivation. Its Congressional delegation is widely known for fighting to maintain corn related subsidies.

Corn ethanol is also supported by the Obama administration, which is seeking to a marked reduction in oil importation within the next decade. That plan requires subsidies for ethanol fuel sources, and its logical that the Midwest’s regional mix would include corn.

Congress spends tens of billions of dollars on corn ethanol subsidies alone, and there have been recent bipartisan efforts to suspend the payments, along with mounting evidence that runoff from increased corn farming harms fragile downstream ecosystems.

Meanwhile, the government continues to encourage its adoption. The EPA’s 2011 Renewable Fuel Standards require 8 percent of all fuel used in the U.S. this year to be from renewable sources, and corn ethanol is the clear winner.

From a policy perspective, cellulose from native perennial grasses like switchgrass is more sustainable, does not affect food prices, and yields better fuel. But anything that would displace corn is anathema to Midwestern Senators who are beholden to the local interests that get them reelected.

Politics trumping science - what else is new?

Related on SmartPlanet:

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

David Worthington

About David Worthington

David Worthington is a contributing editor for SmartPlanet.

David Worthington

David Worthington

Contributing Editor

David Worthington has written for BetaNews, eWeek, PC World, Technologizer and ZDNet. Formerly, he was a senior editor at SD Times. He holds a degree from Temple University. He is based in New York.

Follow him on Twitter.

David Worthington

David Worthington

David does not have financial holdings that would influence how or what he covers. Occasionally he consults for other companies; should David cover a topic in which a client is involved, he will disclose this fact in his writing. His views do not represent those of ScaleOut Software.

He writes for SmartPlanet and is not an employee of CBS.

If you liked this, don't miss...
5
Comments

Join the conversation!

Follow via:
RSS
0 Votes
+ -
RE: Corn ethanol subsidies skate past budget battle
Obviously! The poor, who require corn for food, have a
much smaller lobbying budget than ADM!

Strange policy--using our food for transportation fuel...
Posted by BillBee
8th Apr 2011
0 Votes
+ -
RE: Corn ethanol subsidies skate past budget battle
bu konulardan pek anlamam ama en iyi filmler www.filmxizle.net adresinden izleyebilisiniz happy
Posted by yanlizim
9th Apr 2011
0 Votes
+ -
Stavation.
The final result of using food for fuel.
Posted by Hates Idiots
11th Apr 2011
0 Votes
+ -
Tunisia and Egypt Revolutions
The breaking point for most in Tunisia and Egypt was the rise in food prices. Corn and soy prices have gone up and less available. Changing the ethanol source from food items to switch grass or algae would work better than increasing the use of corn based fuel. I saw a demonstration of a system that takes the exhaust output of a gas engine and feeds it to algae, the algae absorbs some of the CO2 and the algae can be processed for biofuel.
Posted by sboverie
11th Apr 2011
0 Votes
+ -
RE: Corn ethanol subsidies skate past budget battle
The country owns millions and millions of acres of land!! Why not let companies lease the land for a dollar to grow corn! Or better yet! Have the prisoners of the country grow, maintain, and harvest the corn crops, on Government land! We should have plenty of land and labor at much lower over head!
Posted by match1
14th Apr 2011
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!