The Ethanol's coming, The Ethanol's coming!

The Daily Pantagraph reports Greg Jackson and Kyle Ham believe at least one ethanol production facility is in Woodford County's near future.

The interests here in the County being what they are we seriously doubt that there will be much media coverage of some of the rather unpleasant facts attending the ethanol boom. That leaves us with the job and placing the bulls-eye directly on our back.

First off, if ethanol is a way to fight foreign oil dependence, why the heck is there a tariff on Brazilian ethanol and not on Saudi oil? Just a question.

Alright then, let's see 4 up to 70 jobs created! (We wonder if that range could be pinned down a bit better.) Higher prices for grain! Higher property values! Decreased dependence on oil!

The first person to say it's "win-win" may just get slapped.

Let's take the last first. Without going nuts on the numbers, suffice it to say they just don't add up. According to the USDA's latest figures the fossil fuel input is almost equal to the ethanol output! On top of this, of course are the huge corn subsidies, the 51 cent per gallon direct subsidy (not the net ethanol, but rather the gross which is mostly recycled fossil fuels). Granted - there are huge oil and gas subsidies as well. That's worked out real well for us, hasn't it?

Now for no extra charge, you get huge demands on water tables and higher food prices with reduced corn exports. This is all presumably to replace a minuscule percentage of our national oil and gas consumption.

That's not to say this would not be good to some farmers, ethanol producers, and ag conglomerates because it will. Perhaps there even would be a financial windfall for the County Government.

Most commodities folks we know say if you haven't already invested in your ethanol plant, you probably shouldn't, because corn-based ethanol will only last 5 years or so and then the plants will be converted to other biomass like grass, cellulose, etc.

At any rate - here's the uncomfortable question:

Why on earth would we want to turn agriculture on its head in this way for what all the world looks to be a short term profit? Why have we embarked on such a dangerous public policy initiative? Every time the government gets involved in the markets it mucks them up.

We realize that Woodford County is going to ride this wave. We just hope the local effects justify the state and national policies, and no one falls off the surf board.