Reply #3: Don't get too excited before you do some research...

[madeline_con]

The CATO Institute

Archer Daniels Midland:
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).

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.

http://www.cato.org/pubs/pas/pa-241.html

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Sierra Magazine

Bio-Hope, Bio-Hype
A users' guide to biofuels
By Frances Cerra Whittelsey
September/October 2007

Biofuels can be made from nearly any organic material. By essentially recycling carbon from living things (as opposed to the ancient biomass in coal and petroleum), biofuels help fight global warming. But some could also add to our environmental problems: In an equally possible but less rosy future, governments and agribusiness clear rainforests and wetlands for vast plantations of biofuel crops like oil palms. With arable land increasingly devoted to fuel production, food prices push higher. The roads clog with biofuel SUVs that still get lousy mileage. Global warming slows insignificantly, if at all.

http://www.sierraclub.org/sierra/200709/bio.asp

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How Biofuels Could Starve the Poor
C. Ford Runge and Benjamin Senauer
From Foreign Affairs, May/June 2007


The enormous volume of corn required by the ethanol industry is sending shock waves through the food system. (The United States accounts for some 40 percent of the world's total corn production and over half of all corn exports.) In March 2007, corn futures rose to over $4.38 a bushel, the highest level in ten years. Wheat and rice prices have also surged to decade highs, because even as those grains are increasingly being used as substitutes for corn, farmers are planting more acres with corn and fewer acres with other crops.

This might sound like nirvana to corn producers, but it is hardly that for consumers, especially in poor developing countries, who will be hit with a double shock if both food prices and oil prices stay high. The World Bank has estimated that in 2001, 2.7 billion people in the world were living on the equivalent of less than $2 a day; to them, even marginal increases in the cost of staple grains could be devastating. Filling the 25-gallon tank of an SUV with pure ethanol requires over 450 pounds of corn -- which contains enough calories to feed one person for a year.

http://www.foreignaffairs.org/20070501faessay86305/c-ford-runge-benjamin-senauer/how-biofuels-could-starve-the-poor.html

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Can't See the Forest for the Biofuels
By Brandon Keim August 16, 2007

Brazil has designated nearly half a billion acres of forests, grassland and marshes as "degraded" areas suitable for conversion to farming. While the entire Alaska-sized area won't be cleared, much of it could be planted with soybeans, the staple of that country's biofuel efforts.

By correlating soybean prices with satellite images, NASA has shown that biofuel demand has led to the yearly destruction of a near Rhode Island-size swath of Amazon rain forest.

http://blog.wired.com/wiredscience/2007/08/cant-see-the-fo.html
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Ethics of Biofuels
by Sharon Astyk
http://www.energybulletin.net/24169.html