Ethanol Production Managed by Huge Subsidies

Ethanol is just another government interference in all of our lives except, in this case, it's driving food prices up to unprecedented levels, causing of the poor and disadvantaged to go further into poverty. Did anyone ever believe that 40% of our entire corn crop would be used to make Ethanol to add to gas tanks?

Find an environmentalist and ask them to explain how this is serving the people or saving the planet?

Is anyone aware of the cost to produce Ethanol is much higher then to produce gasoline from oil, and that the production of Ethanol has a huge detrimental effect on the environment, much more so the gasoline production? How many people in this country know that Ethanol gets a subside of more then $.50 gallon, costing consumers, taxpayers, billions every year.

Not only driving up food cost, directly starving the third world populations, destroying the environment, Ethanol is destroying the engines in our cars according to AAA.

Does it matter to anyone in power? nah! What could be more important then having a renewable energy resource that can be mandated without having any consumer objection to it. Who voted for this nightmare? Who voted to stop the XL Pipeline? 

Renewable Fuel Standard Costs Chain Restaurants Billions Annually

Source: Marlo Lewis, "Renewable Fuel Standard Costs Chain Restaurants $0.5 Billion to $3.2 Billion Annually," Golbalwarming.org, December 4, 2012. "Federal Ethanol Policies and Chain Restaurant Food Costs," PricewaterhouseCoopers, November 2012.


December 7, 2012
A new study conducted by PricewaterhouseCoopers (PwC) for the National Council of Chain Restaurants (NCCR) estimates the impact of the federal Renewable Fuel Standard (RFS) on the chain restaurant industry, says Marlo Lewis, a senior fellow at the Competitive Enterprise Institute.

•First, PwC examined 11 public and private sector studies estimating the extent to which the RFS increases ethanol utilization beyond what would occur in a free market. Estimates range from an additional 1 billion gallons per year at the low end to an additional 6 billion gallons per year at the high end.

•Second, PwC estimated the impacts of these RFS-driven increases in ethanol consumption on the demand for and price of corn and other agricultural commodities.

•Lastly, PwC combined these price impact estimates with survey information on chain restaurant food commodity purchases.

Here are the results.

•If the RFS in 2015 increases annual ethanol consumption by 6 billion gallons ("Scenario I"), quick service restaurants are projected to spend an additional $2.5 billion (10 percent of major food commodity spending) and full service restaurants an additional $691 million (8.9 percent). Costs at a typical restaurant increase by $18,190 in quick service restaurants and $17,195 in full service restaurants.

•If the RFS in 2015 increases annual ethanol consumption by 1 billion gallons ("Scenario II"), quick service restaurants are projected to spend an additional $393 million per year (1.6 percent of major food commodity spending) and full service restaurants an additional $110 million (1.4 percent). Costs at a typical restaurant increase by $2,894 in quick service restaurants and $2,736 in full service restaurants.

Of course, it's not just the restaurants that will bear those costs. Their customers will pay higher prices too.