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US Farm Lobby and Protectionism create Ethanol Distortions

April 11, 2008

Analysis of:Biofuel startup slow going as slow as molasses | www.chron.com

Corn is one of the most inefficient raw materials for ethanol conversion. Sugar cane and some root crops have more than twice the yield. Although, as the article points out, corn makes little economic sense, tariff barriers and the farm lobby in Washington - with their nationalist rhetoric - continue to support this distortion. To encourage the growing use of bio-fuels, feedstocks should be better subject to a zero tariff, based upon a free trade agreement that would benefit the planet and not a few interested parties.

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