The Ethanol Story
By Ed Fashing

Apparently the only two wins farmers and ranchers have gotten lately are the rejection of the offer by Rabobank, a Dutch bank, to buy Omaha FCS and the continuing increase in value added ethanol production in rural America. In 1987, 73% of the ethanol was produced by the top 4 producers. In 2004, 41% is produced by the top 4 producers. Farmer owned value added ethanol plants despite the onslaught by big agribusiness produces 41% of ethanol from fermentation of corn in value added plants. In Missouri over 300 employees or farmers work or are involved in 3 plants in 3 separate counties.

All other aspects of the Agricultural markets are more concentrated. About 83.5% of the beef packing market is done by 4 packers, 64% of the pork market is packed by 4 packers, over 50% of foul is packed by 4 firms, 63% of flour milling is done by 4 firms.

Meanwhile the joke called the U.S. Department of Justice is forming a prosecution unit to enforce intellectual property rights and ignores the huge problem of agricultural consolidation and import of foreign grown and raised commodities and the destruction of Homeland food production.

The free trade agreements coupled with the World Trade Organization and rush to globalization negotiated by U.S. agents like the U.S. Trade Representative have outsourced producers of U.S. agricultural products as well as U.S. jobs. Why? The USTR and others are more worried about Hollywood, CD producers, book companies’ copyrights, chemical companies’ patents, God-produced gene monopolizers and food importers than U.S. citizens and their livelihood. Too many politicians are more interested in impressing actors, TV talk show hosts and big donators to their campaigns.

The latest onslaught on the farmer’s production of ethanol is an attempt to import ethanol under a Caribbean Basin Plan to aid Central American Countries. Brazil produces cheaper ethanol from excess cane sugar. Up to 7% of ethanol can be imported. The Iowa Senators Harkin and Grassley may have stopped the problem by restricting the usage of imported ethanol to not be used for oxygenating gasoline to lessen production of exhaust gases like carbon monoxide and NOx. There is still a battle in congress over the elimination of ETBE (ethyl-t-butyl-ether) from gasoline since, lacking an alpha hydrogen on the molecule, so bacteria cannot break down ETBE. It then pollutes ground water. The East Coast has prevented cloture in the Senate so the bill cannot be voted on. The Senate needed 60 votes and only got 58. This demonstrates the castration of a constitutional republic government by a pure democracy. A few misguided or monetarily influenced congressmen can control congress as in the age of the Robber Barons.

Dr Bill Heffernan, Professor Emeritus from Missouri University said, “Food is the lighting rod of globalization.” Maybe transnational corporations in their quest for more profit have gone too far. Maybe world politicians achieved their desire to successfully control food resulting in increased world hunger. Tens of thousands of people starve monthly in Africa alone. In the world, 40% of the workers earn $2/day or $800/year. Is this the level playing field that globalists seek?