After dropping from $2.50 to just over $2.00 during the brunt of the recession four years ago, beef prices are soaring again. In fact the cost of a pound of ground beef spiked to an all-time high of $3.51 over the Memorial Day weekend. Steak prices are running even higher – at $4.81 per pound.
What’s behind this spike? Ethanol subsidies (a.k.a. government interference in the marketplace).
More than a quarter of the nation’s corn crop is being used to satisfy a federal mandate requiring 14.4 billion gallons of ethanol fuel to be purchased and blended into gasoline this year. And guess what, that number goes up every year. That means higher prices on meat and dairy products (which rely on corn to feed the animals that produce milk, poultry, pork and hamburgers).
This website has railed (repeatedly) against ethanol subsidies – which are supported by leaders in both major political parties and virtually every candidate for president (thank you, early voting Iowa).
Why do we hate them? For starters corn is horribly inefficient as a biofuel – and the costs associated with its manufacture and blending have actually increased gas prices (in addition to increasing food prices). So by subsidizing the corn ethanol market via a maze of subsidies, tariffs and mandates, government has not only failed to solve the problem it set out to solve – it has compounded that problem and created a host of new ones.
We’ve said it before and we’ll say it again it’s time to end the ethanol mandate … and get government out of the alternative fuel business altogether.
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73 comments
Who the hell wrote this and where do you shop?? $2.00 per pound for ground beef?? Fracking 60/40 maybe. Crap. Here in Cola walmart (that’s right ? ? ? ? ? ? ? ? ? ?
AHAHAHAHAHAHAH STUUUUFFMAAAART!!
? ? ? ? ? ? ? ? ? ?)
Has not seen 70/30 below $2.50/lb in over three years. And what kind of steak are you buying for $4.81. :P :P
I can’t disagree with the article, but no shit. What’s the name of the store you shop at. Damn.
Frank Pytel
Who the hell wrote this and where do you shop?? $2.00 per pound for ground beef?? Fracking 60/40 maybe. Crap. Here in Cola walmart (that’s right ? ? ? ? ? ? ? ? ? ?
AHAHAHAHAHAHAH STUUUUFFMAAAART!!
? ? ? ? ? ? ? ? ? ?)
Has not seen 70/30 below $2.50/lb in over three years. And what kind of steak are you buying for $4.81. :P :P
I can’t disagree with the article, but no shit. What’s the name of the store you shop at. Damn.
Frank Pytel
This is just another symptom of the disaster of Obama. Solid families are entrenched, but the economy and the country are in a state of chaos. It’s really messed up for the easily led…and likely to get worse for a lot of yall, who worship pop culture and Obama..
We’ll be better in the end, because of good Americans…but pray for our country, that God will take over the mess that we’ve become, from a federal gov’t and spiritual perspective…
Dummy.
This was all put in place before Obama
Most people, when something fails, adjust…That is a LEADER’S job….
Obama has DONE nothing, other than the wrong thing…
When gas went up to $4 a gallon in Summer 2008, Bush opened new drilling…and gas prices were cut in half…
We need LEADERSHIP in Washington…not more failure and misery…
Most people, when something fails, adjust…
Not you I guess.
When gas went up to $4 a gallon in Summer 2008, Bush opened new drilling…and gas prices were cut in half…
It is astounding how ignorant you are. Gas prices crashed because of the recession you nincompoop. “Opening up new drilling” has zero effect in the short term regardless of what figures you look at because it takes a long time to find suitable oil drilling spots and actually set up the machinery to drill and collect the oil. It takes YEARS, not 4-6 months.
Liberals HATE the TRUTH…
Truth…right?
What did Bush do when the Dow Jones index fell to 7000?
Do you ever shut the fuck up? Seriously?
What’s your Stupid @$$ on a site looking for content, if you you’re going to B!t*h and whine when you get it…H#!! I’d love for for one of you ignorant some-beeches to come up w/ a coherent thought once in a while…
But sorry (not really) I don’t just tell you lies and myths to soothe your Filthy conscious like CNN, MSNBC, FITS and CBS…
Either grow up, and learn to take it, or $#!* all over yourself when you hear the truth. Does not make any difference to me….
Who the dummy? The original mandate included a high percentage of cellulosic ethanol (was by design to grow and phase out corn), which I have stated has not worked. That is why the program should have been shut down by Obama and his EPA.
We should eliminate ethanol subsidies, but we should also eliminate corn subsidies. This would raise the price of meat from corn-fed animals and the price of products sweetened with high-fructose corn syrup to their ‘true cost,’ i.e., fair market value. People would consume less of these products, reducing our country’s obesity epidemic and leading to significant savings on health care. We need to stop subsidizing obesity and stop paying for it (again) on the back-end through health insurance.
We should eliminate ethanol subsidies, but we should also eliminate corn subsidies. This would raise the price of meat from corn-fed animals and the price of products sweetened with high-fructose corn syrup to their ‘true cost,’ i.e., fair market value. People would consume less of these products, reducing our country’s obesity epidemic and leading to significant savings on health care. We need to stop subsidizing obesity and stop paying for it (again) on the back-end through health insurance.
The 2012 drought affected 80% of the nations corn crop. Forecasters warned last year that the drought would cause these price increases. Well that and the fact that the republican house couldn’t produce a farm bill. But hey if ethanol spin is your story then stick with it.
Yes, with droughts and population growth we should not use farm land for fuel. With new oil and gas drilling, the US has plenty of energy. For example, new methods for making fuel-grade ethanol from hydrocarbons like natural gas, an abundant U.S. resource( celanese tcx – benefits-cleaner,safer and cheaper than Bio-ethanol ) should be used until better energy options are feasible . The current RFS does not include hydrocarbons on its list of approved ethanol sources, stifling competition and giving the advantage to a small sliver of industries.When Congress picked corn as the winner in 2007, it did not account for the advances in technology that would occur, enabling the cost-effective production of ethanol on a mass scale from new sources. It should be amended to make room for new ethanol sources in the marketplace. Excluding them because of the RFS program inhibits the growth of our domestic energy economy. And for the carbon and global warming problem we need to fast track new, safe nuclear energy,( Terra Power,) The biosynthetic process,at ( Proterro ) And ( Air Fuel Synthesis )
Corn for ethanol has a energy unit return of roughly 1.25/1. Switch grass has an return of 5/1.
Why , you ask , are we not using switch grass. The answer, switch grass isn’t traded on the commodities market.
What is switch grass? Prarie grass.
Excellent point. Now do we want to tackle the hemp market?
Has never been industrialized to the point of efficiently replacing sugar or corn. They have made this ethanol in the lab, but not field worthy.
Excellent point. Here’s a link from the USDA’s site:
http://www.ers.usda.gov/topics/in-the-news/us-drought-2012-farm-and-food-impacts.aspx#.UaiTFtjwa70
We will likely see the largest impacts for beef, pork, poultry and
dairy (especially fluid milk). The full effects of the increase in corn
prices for packaged and processed foods (cereal, corn flour, etc.) will
likely take 10-12 months to move through to retail food prices.
The drought has the potential to increase retail prices for beef,
pork, poultry, and dairy products throughout 2013. Drought conditions
led to herd culling in response to higher expected feed costs, and this
liquidation led to temporarily reduced prices for beef and pork in the
months of August and September. However, the October CPI report
indicated that the impact of the liquidation has ended and prices for
beef and pork are now expected to increase through 2013.
That doesn’t mean that corn for ethanol has no impact, though. It is extremely concerning how much America relies on corn, a series of bad droughts could be quite catastrophic in a number of ways.
The 2012 drought affected 80% of the nations corn crop. Forecasters warned last year that the drought would cause these price increases. Well that and the fact that the republican house couldn’t produce a farm bill. But hey if ethanol spin is your story then stick with it.
Yes, with droughts and population growth we should not use farm land for fuel. With new oil and gas drilling, the US has plenty of energy. For example, new methods for making fuel-grade ethanol from hydrocarbons like natural gas, an abundant U.S. resource( celanese tcx – benefits-cleaner,safer and cheaper than Bio-ethanol ) should be used until better energy options are feasible . The current RFS does not include hydrocarbons on its list of approved ethanol sources, stifling competition and giving the advantage to a small sliver of industries.When Congress picked corn as the winner in 2007, it did not account for the advances in technology that would occur, enabling the cost-effective production of ethanol on a mass scale from new sources. It should be amended to make room for new ethanol sources in the marketplace. Excluding them because of the RFS program inhibits the growth of our domestic energy economy. And for the carbon and global warming problem we need to fast track new, safe nuclear energy,( Terra Power,) The biosynthetic process,at ( Proterro ) And ( Air Fuel Synthesis )
Corn for ethanol has a energy unit return of roughly 1.25/1. Switch grass has an return of 5/1.
Why , you ask , are we not using switch grass. The answer, switch grass isn’t traded on the commodities market.
What is switch grass? Prarie grass.
Excellent point. Now do we want to tackle the hemp market?
Has never been industrialized to the point of efficiently replacing sugar or corn. They have made this ethanol in the lab, but not field worthy.
Excellent point. Here’s a link from the USDA’s site:
http://www.ers.usda.gov/topics/in-the-news/us-drought-2012-farm-and-food-impacts.aspx#.UaiTFtjwa70
We will likely see the largest impacts for beef, pork, poultry and
dairy (especially fluid milk). The full effects of the increase in corn
prices for packaged and processed foods (cereal, corn flour, etc.) will
likely take 10-12 months to move through to retail food prices.
The drought has the potential to increase retail prices for beef,
pork, poultry, and dairy products throughout 2013. Drought conditions
led to herd culling in response to higher expected feed costs, and this
liquidation led to temporarily reduced prices for beef and pork in the
months of August and September. However, the October CPI report
indicated that the impact of the liquidation has ended and prices for
beef and pork are now expected to increase through 2013.
That doesn’t mean that corn for ethanol has no impact, though. It is extremely concerning how much America relies on corn, a series of bad droughts could be quite catastrophic in a number of ways.
Serious question: Why hasn’t the market evolved to meet the demand? Government mandating more corn production would ideally mean that more people could grow corn due to increased demand, right?
There is less meat (food) demand due to increased prices caused by a restriction of supply. The supply is restricted because the companies can’t survive at the old pricing and new feed costs. In 4 years, 43% of the domestic poultry industry is now owned by foreign countries that swooped in and bought our failed companies 20 cents on the dollar. They went bankrupt because of the increases in their largest cost CORN, up 275%. Not to mention other costs to consumers, such as the blending fees, and the tax subsidies we gave to the mandate. Also, there is a finite resource needed to grow corn…tillable soil. That my friend is maxed out to the brim.
My understanding is that subsidies pay farmers not to produce – therefore keeping supply low and prices high so our farmers can compete – the products we subsidize are the worst for our health and environment – crazy when you think about it !
Serious question: Why hasn’t the market evolved to meet the demand? Government mandating more corn production would ideally mean that more people could grow corn due to increased demand, right?
There is less meat (food) demand due to increased prices caused by a restriction of supply. The supply is restricted because the companies can’t survive at the old pricing and new feed costs. In 4 years, 43% of the domestic poultry industry is now owned by foreign countries that swooped in and bought our failed companies 20 cents on the dollar. They went bankrupt because of the increases in their largest cost CORN, up 275%. Not to mention other costs to consumers, such as the blending fees, and the tax subsidies we gave to the mandate. Also, there is a finite resource needed to grow corn…tillable soil. That my friend is maxed out to the brim.
My understanding is that subsidies pay farmers not to produce – therefore keeping supply low and prices high so our farmers can compete – the products we subsidize are the worst for our health and environment – crazy when you think about it !
Really? you mean the $2.69/pound ground chuck I bought over Memorial Day wasn’t real?
Anyway, beef is high. But it is perishable item. Slow down purchasing and prices will come down.
Really? you mean the $2.69/pound ground chuck I bought over Memorial Day wasn’t real?
Anyway, beef is high. But it is perishable item. Slow down purchasing and prices will come down.
Not sure where or how you are coming up thus this, but the spent corn used to produce ethanol is used as livestock feed.
There is a residule of corn ethanol, protines that are used as an additive to feeds. However, they lack the carbs and sugars, which are the majority and very important (less expensive) segment of the feed stock.
Not sure where or how you are coming up with this, but the spent corn used to produce ethanol is used as livestock feed.
There is a residule of corn ethanol, protines that are used as an additive to feeds. However, they lack the carbs and sugars, which are the majority and very important (less expensive) segment of the feed stock.
Obama spent $90 Billion of OUR money on Solyndra to pay off the KOOKS in the solar panel nutjob industry…
Obama is FREAKIN Clueless, w/ no energy policy, other than forcing suffering americans to pay TWICE market value, because of his incompetence…
Ethanol is a BIG, BIG Screw-up by BOTH parties, but it’s only because the media has the Ignorant convinced it’s a good idea…
Dear Village Idiot (Grand Trango): you said most people adjust to bad outcomes. And I asked you what Bush did when the Dow halved to 7000 in late 2008? You didn’t answer. Just blithered through with more rhetoric on different topics.
I’ve seen better heads on lettuce.
Bush left office right after the leftwing mis-managed Fannie-Mae and Freddie Mac to collapse the mkt. (see Frank Raines and Barney Frank-and Community Re-Investment Act.
Bush actually warned the market more than a dozen times the Crash would happen when the government FORCED banks to give money to people w/ no intention or ability, to pay it back…
That said: What will Obama do when it collpases again? That’s what should scare the H#!! out of all of us. The RICH will stop profiting lavishly off the billions and billions a month, Obama is stuffing to inflate the market…
Why do liberals point to the mkt as Obama’s one success (other than Iraq?) The averge people suffering under the miserable Obama, have no money for the market.
Why do you think Wareen Buffet was sucking off Obama? He wanted to get richer, and he and Obama don”t care if there are No Jobs. They aee elitists. As long as they eat Phat, and live Large, F$^* everybody else. You seem as Greedy and Hateful as them…
“Why do you think Wareen Buffet was sucking off Obama”
So, when you finally give yourself a free moment, you think of this kinda shit?
I am happy that you attempted to answer the issue rather than spout rhetoric (okay you refrained from the usual propaganda for two paragraphs).
Obama has a lot of successes. The market, Osama Bin-Laden, Nobel Peace Prize, Health Care to name a few. You will disagree but most people don’t. And there is plently I dislike.
And BTW, I’m Republican and getting richer in this market. Smart people understand the rules of the game and use them to prosper. You?
Now get back to your Hitler, baby-killer, and gun rants.
honestly, you could have left the Nobel Peace Prize part out. The King of Drones is anything but peaceful. Even the narcissist in Chief was a little embarrassed to be awarded that honor. Based on what? The health care law is a joke. If you are over 26 you are screwed again. You will be paying exorbitant premiums. The theme song for that idiotic plan should be “How do you like me now?” It is just another govt. shakedown of the middle class and small businesses.
Bush didnt “warn” anyone of anything and didnt even understand what the Hell was going on.Youre a liar.
You are wrong. Bush rang the bell in 2006. Barney the dinosaur and friends chose not to listen. Here you go baby doll: http://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac –
and if that’s not enough, “But Frank and other Democrats still opposed tighter regulation, Frank most notably in his public statements saying there was nothing wrong with Fannie and Freddie. He and other House Democrats also sent a letter to President George W. Bush in June 2004, saying the proposed crackdown could “weaken affordable housing performance . . . by emphasizing only safety and soundness.’’ http://www.boston.com/news/politics/articles/2010/10/14/frank_haunted_by_stance_on_fannie_freddie/
Maybe YOU didn’t understand what was going on. But I won’t call you a liar. Idiot maybe. But not liar.
Great (REALITY-Based) post, boom boom.
The Left lives on lies and myths. They HATE the TRUTH…It shuts them up immediately. As you did…Good job…
Just out of curiosity, big idio”T”, you advocate American jobs and the lack thereof,HOW MUCH AMERICAN MADE do you buy?
His tin foil hat might be American made.
Why is Barney Frank still in office? Please America….He is certainly one of the culprits in the 2008 disaster.
She don’t eat meat,but she sho like the bone…(jack my beef,bitch)
http://www.youtube.com/watch?v=sEDw9xgSmSc
She don’t eat meat,but she sho like the bone…(jack my beef,bitch)
http://www.youtube.com/watch?v=sEDw9xgSmSc
Corn is food. Period. Congress could and does screw up a one car funeral.
At one time Shell Oil would not use corn ethanol. Their contention was it was a food source, and using it would drive up the price of food.
Corn is food. Period. Congress could and does screw up a one car funeral.
At one time Shell Oil would not use corn ethanol. Their contention was it was a food source, and using it would drive up the price of food.
Kevin Bryant has an article about industrialized hemp – which not a solve all but a step in the right direction – he doesn’t come out and say he supports it – but hey at least he has done some reading – government subsidies only increase prices – in any area – food, college, healthcare ….
Kevin Bryant has an article about industrialized hemp – which not a solve all but a step in the right direction – he doesn’t come out and say he supports it – but hey at least he has done some reading – government subsidies only increase prices – in any area – food, college, healthcare ….