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Oil Reserves
The truth is is that the American farmer grows everything that is needed to keep our carbon guzzlers running indefinitely. Soydiesel is here to stay with no problems for use in any diesel. In fact small rise in power is observed along with much cleaner emmisions. Several Metro areas are using Soy in their busses. With slightly increased costs. Ethanol has not had quite the breakthrough development of Soydiesel even though it has been around long as moonshiners have run out of gas in run cars. I think that oil companies have prevented the complete substitution for petrol based products. I know mileage and power problems exists but additives can be made to make it work. As far as engine oil and those related issues go, Synthetics are still largely petroleum based but development and research has been done on vegetabler based oils. John Deere has experimented, though with mixed results, with vegetable based hydraulic oil. Further R&D is being done by many state U's.
Watch the Disc Channel enough and you'll sooner or later see those people running their Mercedes SW or old P/U off of used cooking oil.
They have always said neccessity is the mother of invention. And they also have said that the surest road to success is the highway of failure. We have the technology. WE can build it. Do we have the ambition and patience?
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Oil Reserves
I don't know when the last time you investigated the production of corn, but there are millions of excess bushels produced rotting in silos around the country. In fact, corn prices are so low,(around 2.00 a bushel) less than what was recieved for it 50 years ago. it is forcing many productive acres idle. Also, a huge amount is shipped overseas. If there were a shortage or even an near shortage, you would not find this It is one of the primary reasons that less than 2% of Americans are in farm related industry. As for Soybeans, the situation is nearly the same. Production has fallen to 2.69 billion bushels over last 3 years because of below break even prices due to overproduction. Overproduction, not underproduction is the reason the American farm is disappearing. Whether you realize it or not, agriculture is the backbone of the economy. We have by far the cheapest food prices in the world. Our existing farms are usually at 50% or less capacity. One thing that the average person doesn't understand is that the cost of production is not directly tied to increase or decrease of production. Please, I beg you, investigate how big your mouth is before inserting foot
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Oil Reserves
Domestic usage is way down for corn. Exports are up. This is an excess. And yes there are millions of bushels rotting or unusuable for food consumption. The use of corn to make ethanol still allows it to be fed to livestock with very positive results. I think that you don't understand that the cost of production per unit will go down as quantity of production increases and technolgy improves. As for the price issue, it DOES have relevance. Fixed production costs have increased while prices remain the same. The subsidy issue is not relevant. Whether they exist or not, everyone agrees that long run prices would stabilize at a "normalprofit" if they were elimenated. The problem is farmers are absorbing the increases in cost of fixed assets. The increase in production that many farmers could handle without significantly increasing the cost of fixed assets would serve to keep prices well under control. Don't forget that farmers are price takers and not makers. They have a homogenous product. There is little or no brand distinction especially on commodities. This serves to keep prices low even if there are no subsidies.
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