Why should us small family dairy farmers have to pay more for our dairy feed because of ethanol?

Question

I am so sick of all of these commercials on the tv and radio talking about how wonderful ethanol is! We have a small family dairy ( we milk about 55 Jerseys) our feed price has DOUBLED in the last couple of years because of ethanol. They are taking all of the corn that should go to cattle feed and human food and this is driving up the price of our dairy feed. Sure , milk is up in the stores, but i think people would be supprised to see how little we are paid for our milk! The so-called co-op (Dairy Farmers of America) and the grocery store chains make more money than we do, we do all of the hard work and get paid the least. And to top it all off ADM is the nations largest producer of ethanol--and what does our feed truck that comes once a week say on the side of it? ADM!! Our feed price has went from $800 for 6 tons of feed to $1600!!! all of this because of ethanol!!! And i am sick of it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 1

The poultry industry is feeling the same heat. The cost to feed chicken has more than doubled. I don't care what anyone says, the solution to a different fuel source is not to burn our food source. I'm all for getting away from oil, but ethanol is not the answer.

Answer 2

When the government subsidizes something, the price always goes up. When prices go up, the little guy gets screwed. I feel for folks like you and small independent truckers who've signed contracts on which they'll lose money. And where is the demand for ethanol? I don't see anyone clamoring for it. It's less efficient, gallon for gallon, against fossil fuels. Do we really need to pay more at the pump for less AND have our tax dollars also go to pay for this fuel?

The same goes for government regulation. It usually only hurts the little guy, as the big guy can better manage these as well. Often the guys who get big enough start influencing regulation to their advantage. Sometimes he knows his investors are willing to wait longer for return, sometimes it's because he has lawyers who can decode regulation more easily and manage risk. Remember the story of the automaker, Tucker, who got red-taped out of business because of the influence of the "Big 3" on regulation? Yet he manufactured a superior product. (He was prescient in the observation that this kind of regulation would push overseas automakers to come in and dominate our markets.)

I wrote to my congresspeople about this very issue, asking them to support Kay Bailey Hutchison's bill to stop subsidizing corn-based ethanol. I got a letter back from Senator Martinez telling me that ethanol had so very little impact on corn prices. Really? The World Bank estimated that it drove up corn prices 75% around the world and caused food shortages and riots.

I will continue to bend my congresspeoples' ears over this issue because the government should not be in the energy speculation business; let the free market decide. This is what happens when the government messes with us. It's totally un-American and there are all kinds of people in Congress who ought to be ashamed.