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grammydidi
Whenever I dink around the net, it's always amazing to me what I can find. These quotes are from a 1995 commentary about ADM and ethanol production and how much it really costs us all. The 10 yr old $ amounts are probably skewed by now, but the basic premises surely are still true. The whole article is 30 pages in Word.
It would be interesting if this same writer could update his study, and see just who in the Bush administration is still on ADM's 'payola roll'.


A CASE STUDY IN CORPORATE WELFARE
by James Bovard
James Bovard is an associate policy analyst with the Cato Institute. His most recent book is Shakedown: How the Government Screws You from A to Z (Viking, 1995).

QUOTE
The Archer Daniels Midland Corporation (ADM) has been the most prominent recipient of corporate welfare in recent U.S. history. ADM and its chairman Dwayne Andreas have lavishly fertilized both political parties with millions of dollars in handouts and in return have reaped billion-dollar windfalls from taxpayers and consumers. Thanks to federal protection of the domestic sugar industry, ethanol subsidies, subsidized grain exports, and various other programs, ADM has cost the American economy billions of dollars since 1980 and has indirectly cost Americans tens of billions of dollars in higher prices and higher taxes over that same period. At least 43 percent of ADM's annual profits are from products heavily subsidized or protected by the American government. Moreover, every $1 of profits earned by ADM's corn sweetener operation costs consumers $10, and every $1 of profits earned by its ethanol operation costs taxpayers $30.


QUOTE
The Wall Street Journal declared on July 11 that "for more than two decades, Mr. Andreas has reigned as the prince of political influence." The Washington Post described Andreas as "one of the great financial 'switch hitters' of American politics," meaning that ADM will bankroll any politician who supports ethanol or sugar subsidies regardless of political creed or ideological convictions. Andreas has done a masterful job of diversifying his investments by carefully cultivating both Senate Majority Leader Bob Dole and Senate Minority Leader Tom Daschle. The New York Times in 1990 called Dole "ADM's staunchest ally on Capitol Hill." The Wall Street Journal likewise recently reported, "In the Senate, Mr. Dole has been the chief promoter of the ethanol subsidy." The Times also noted that "ADM's private plane has flown Dole to Midwest speaking engagements, and for a time ADM sponsored Dole's commentaries over the Mutual Radio Network. The Senator and his wife, Elizabeth Dole, then Secretary of Labor, purchased an apartment from Andreas in 1982 at the Sea View, a Bal Harbour, Florida, hotel in which residents hold shares. They paid $150,000 -- less than the apartment's market value." Since 1993 Dole has accepted 29 flights on ADM's private planes (Dole reimburses the company for the price of a first-class ticket -- far less than the cost of chartering a private plane). After Elizabeth Dole became the head of the Red Cross, Andreas's nonprofit foundation gave $1 million to the Red Cross. Andreas also donated $100,000 to Bob Dole's now defunct Better America Foundation.


QUOTE
The Energy Department also got into the ethanol game and has lost more than $100 million on recipients' defaults on ethanol loans. Andreas was less than pleased at the prospect of more tax-subsidized competition. On August 20, 1981, he wrote to James Stearns, then director of the Office of Alcohol Fuels at the Department of Energy, to urge the government not to go through with loan guarantees it had announced for 11 small ethanol producers. He noted, "It is very clear to me that your program to finance totally inexperienced individuals in their investments mostly as tax shelters is counterproductive in that it has discouraged the flow of private capital into new facilities." Andreas went on to complain about Brazilian ethanol imports in the same letter. At the time, ADM controlled over 70 percent of ethanol production facilities in the United States.


QUOTE
Andreas's single largest rip-off of taxpayers occurred in 1986. The price of corn had risen and the price of gasoline had fallen. Clearly, ethanol had become a greater economic absurdity than ever. Andreas and ethanol supporters had an easy solution: make ethanol pseudocompetitive again through USDA gifts of free corn. Andreas and his top lobbyist met with USDA secretary Richard Lyng for a breakfast at the Madison Hotel in Washington. Two days later Lyng announced a new program under which ADM would receive $29 million in free corn and other ethanol producers would receive multi-million-dollar corn windfalls. The USDA's Office of Energy proposed targeting the free corn to only those ethanol producers that were in severe financial distress. But Secretary Lyng personally vetoed the "means test" idea as unfair. Lyng declared that imposing a means test "didn't make sense to me at all. . . . I think the government should treat people equally. . . . The Constitution calls for that." But, because only a handful of ethanol producers were eligible for the multi-million-dollar giveaway, Lyng's profession of concern about "equal treatment" was ludicrous, even by Washington standards. Jack Blum, a lawyer for the Independent Gasoline Markets Council, denounced the giveaway as "corporate food stamps for ADM." One company, New Energy Corporation, received almost $5 million worth of free corn and then went bankrupt a few months later.


QUOTE
As a result, the net energy efficiency of ethanol is in question. One gallon of ethanol contains the energy equivalent of 76,000 British Thermal Units (BTUs). In 1991, the Department of Energy estimated that to make a gallon of ethanol required 85,000 to 91,000 BTUs.


QUOTE
The EPA waiver for ethanol's use in gasoline was the equivalent of allowing city trash trucks to drop as much trash on the streets as they pick up from the curbsides -- and to double bill their customers. The federal government had gone from ignoring pollution to benefit big business to mandating pollution to benefit one specific fat-cat corporation.
progressivephoenix
Thanks didi, I had heard some of this stuff about ethanol, but could never find the information.


QUOTE(grammydidi @ Jun 25 2005, 06:57 AM)
Whenever I dink around the net, it's always amazing to me what I can find.  These quotes are from a 1995 commentary about ADM and ethanol production and how much it really costs us all.  The 10 yr old $ amounts are probably skewed by now, but the basic premises surely are still true.  The whole article is 30 pages in Word. 
It would be interesting if this same writer could update his study, and see just who in the Bush administration is still on ADM's 'payola roll'.
A CASE STUDY IN CORPORATE WELFARE
by James Bovard
James Bovard is an associate policy analyst with the Cato Institute. His most recent book is Shakedown: How the Government Screws You from A to Z (Viking, 1995).
*
Eino
QUOTE
As a result, the net energy efficiency of ethanol is in question. One gallon of ethanol contains the energy equivalent of 76,000 British Thermal Units (BTUs). In 1991, the Department of Energy estimated that to make a gallon of ethanol required 85,000 to 91,000 BTUs.


Interesting. Now, if they got those BTUs to make a usable liquid fuel from coal or nuclear power, would that be all bad? Why does it have to be assumed that it all comes from gasoline?

Consider this. There are a lot of industrial processes with "waste heat." If that waste heat was the energy used to make the alcohol, would that not be a wonrous thing? Almost like something from nothing.

No doubt that some of the BTUs would have come from liquid fuel for the farmer to operate his or her machinery. Still, I fancy most of the energy is used in the distillation process.

That information came from the Cato Institute.
QUOTE
James Bovard is an associate policy analyst with the Cato Institute. His most recent book is Shakedown: How the Government Screws You from A to Z (Viking, 1995).


You gotta really watch the Cato boys. they are very good at telling you what they want you to hear. They are trying to get you to believe what they believe and that is the truly scarey part.
Acebass
This is from the LA Times,


To Replace Oil, U.S. Experts See Amber Waves of Plastic By Stephanie Simon Times Staff Writer
Sun Jun 26, 7:55 AM ET



BLAIR, Neb. — He operates 90,000 feet of hissing pipes and dozens of enormous churning vats — an industrial jungle with a single, remarkable purpose: "Essentially," plant manager Bill Suehr says, "we've got corn coming in at one end and plastic coming out the other."

In a hot, noisy factory that smells of Frosted Flakes, yeast and wet farm animals, agribusiness giant Cargill Inc. has set out to lead a new industrial revolution — one fed by the green fields of the Midwest rather than the oil fields of the Middle East.

Sprawled across a square mile of prairie, a series of automated assembly lines turns raw corn kernels first into sugary syrup and then into white pellets that can be spun into silky fabric or molded into clear, tough plastic.

The end products — which include T-shirts, forks and coffins — look, feel and perform like traditional polyester and plastic made from a petroleum base. But the manufacturing process consumes 50% less fossil fuel, even after accounting for the fuel needed to plant and harvest the corn.

With oil prices near $60 a barrel, goods made from grain also compare favorably on price. So chemists and engineers are racing to figure out how to substitute Iowa's bounty for Iraq's. The goal: to use crops, weeds and even animal waste in place of the petroleum that fuels much of American manufacturing.

The Energy Department is so enthusiastic that it is aiming to convert 25% of chemical manufacturing to an agricultural base by 2030.

Cargill is the first to commercialize the technology, producing 300,000 pounds of pellets a day — but its rivals are not far behind.

DuPont Co., which invented polyester and nylon, has its own corn-based fabric in the works.

An Arkansas firm called BioBased Technologies just opened a factory that uses soy instead of petroleum to make polyurethane for use in seat cushions, shoe soles and spray-foam insulation.

The clothing firm Of the Earth, based in Oregon, sells T-shirts and yoga pants made from soy fiber.

University professors across the Midwest are turning their labs into miniature bio-factories, transforming soybean oil into mattresses and chicken feathers into golf tees — even, if all goes well, corn into cellphones. One professor sponsors an annual soybean technology contest; past winners have turned beans into ski wax, candles and nail polish remover.

"Anything you can make out of petroleum, I can make out of corn and soybeans," said Larry Johnson, director of the Center for Crops Utilization Research at Iowa State University.

Skeptics question the economic viability of such projects.

When Cargill launched its factory in 2002, its pellets were far more expensive than equivalent material made from oil. Wild Oats Markets, an early customer, paid 50% more for takeout containers made from the bio-plastic.

But over the last two years, the Cargill plant has gotten more efficient — and oil prices have soared.

The result: The "corn-tainers" in the deli now cost Wild Oats 5% less than traditional plastic, Wild Oats spokeswoman Sonja Tuitele said.

Other products made with the corn-based pellets are pricier. Depending on how they process the material, some manufacturers report that using Cargill's pellets raises their costs by as much as 25%. But a growing number in the United States and abroad is willing to pay that premium for a product perceived as environmentally friendly.

As Kathleen Bader, chief executive of Cargill's subsidiary NatureWorks, tells her customers: "We're using material that's renewable in 90 days instead of 90 million years."

Converted into a biodegradable plastic, the pellets are molded into water bottles, portable CD players, auto parts and even coffins (sold in the Netherlands). The plastic is also used as packaging for Del Monte fresh-cut fruit and Newman's Own organic salads.

Other companies are processing the pellets into fibers that can be used for T-shirts, carpets and super-soft diaper wipes.

The Pacific Coast Feather Co. has rolled out a line of linens made from the corn pellets. Faribault Mills is marketing a $100 wool-and-corn blanket that CEO Michael Harris calls luxuriously soft. (One drawback: If you leave it in a hot dryer too long, it has a tendency to melt.)

"We care about the environment," Harris said, "and we just thought: Wow, wouldn't this be cool, if we could replace our petroleum-based acrylics with corn."

The technology that turns corn into blankets — and so many other consumer goods — is actually decades old.

In the 1920s and '30s, Henry Ford experimented with using crops, mostly soy, to make auto parts.

But petroleum proved easier to convert into plastics; at the time, it also seemed a much more modern, forward-looking material. Plus, it was cheap. As late as 1970, oil cost about $3 a barrel — not much more than a bushel of corn.

These days, corn still costs about $2 a bushel. It makes a good substitute for $60-a-barrel oil because, like petroleum, it contains carbon, the essential building block for plastic.

In theory, any carbon source would work in these new factories. Engineers say they'd like to replace corn one day with a crop that requires less fertilizer and pesticide, such as wild grass. They may even be able to use agricultural waste, such as the cornstalks left in the field after harvesting. For now, though, raw kernels are the easiest to process.

Even if it takes off, biomanufacturing will never wean the nation entirely from oil.

Roughly 7% to 10% of the fossil fuel consumed in the U.S. is used to manufacture plastics and fibers, according to the Department of Energy. If corn replaced petroleum in every factory, the nation would cut oil consumption by hundreds of millions of barrels a year — but would still require billions more for heat, power and fuel.

Given that limitation, some critics view all the hoopla as an agribusiness con, more about selling corn than saving the Earth.

"The main motivation is there is only so much high-fructose corn syrup you can pack into sodas," said Tillman Gerngross, an associate professor of engineering at Dartmouth College who specializes in biotechnology. "This is another way to turn corn into products people will buy."

But other scientists maintain that the new technology offers genuine environmental benefits, beyond the reduction in fossil-fuel use.

In particular, they point to the huge problem of "e-waste," the 2.2-million tons of cellphones, computers and other electronics dumped in landfills each year. If those products were made of bio-plastic, they could be composted. In the right conditions — warm and humid — they would degrade within months, dissolving into carbon dioxide and water.

At Purdue University, Bernie Tao, a professor of agricultural and biological engineering, believes so passionately in the future of turning crops into consumer goods that he has developed a science kit for children that uses corn and soy to make crystals, crayons and adhesives.

"We need to teach our young students that chemistry is nothing to be scared of," he said. "It's all about the stuff growing outside their windows."


and of course they could have had this technology years ago if it hadn't been for greedy businessmen.

Popular Mechanics 1938.
http://www.jackherer.com/popmech.html

Yes grammydidi it's out there, you just have to look for it.
Eino
QUOTE
"Anything you can make out of petroleum, I can make out of corn and soybeans," said Larry Johnson, director of the Center for Crops Utilization Research at Iowa State University.


If George Washington Carver were still around he'd love it.
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