January 24, 2007

DO DEMOCRATS HATE BIG [CORN] OIL TOO?:

Ethanol Boom Helps Cut $31 Billion From Farm Subsidies (NewsMax.com, Jan. 24, 2007)

The fuel ethanol boom and high crop prices will cut U.S. farm subsidy spending by $31 billion through 2016, a dramatic drop in the cost of the farm program, the Congressional Budget Office said on Wednesday.

In a semiannual report, CBO estimated farm subsidies would cost $10 billion this year and the annual cost "will range between $8 billion and $10 billion over the next decade."


What shall we do with the surplus?

Posted by Orrin Judd at January 24, 2007 5:32 PM
Comments

This isn't a "saving", it's an accounting entry.

Debit Welfare for Farmers
Credit Welfare for ADM

Report only half the entry, spend $31 billion on Bridges to Nowhere.

Posted by: Bruno at January 24, 2007 6:00 PM

No, it's defense spending.

Posted by: oj at January 24, 2007 6:19 PM

Surplus? Won't go back to your pocket. It will be used to subsidize cattle ranchers who have to pay a higher price to feed their cattle. Btw, Ted Turner is taking millions of subsidy either as a farmer or as a rancher.

Posted by: ic at January 24, 2007 7:12 PM

Some of that unspent subsidy money can go to developing a combustion engine that actually isn't damaged by ethanol.

Posted by: John J. Coupal at January 24, 2007 8:31 PM

John:

No, we don't want to pick technologies--we'll get it wrong. Just make gas so expensive that innovation is economically feasible.

Posted by: oj at January 24, 2007 8:52 PM

OJ: decrease income taxes by the same amount at the same time and you've got a deal.

Posted by: PapayaSF at January 25, 2007 1:45 AM

Of course. Bushenomics is predicated on replacing income taxes with consumption taxes.

Posted by: oj at January 25, 2007 8:37 AM
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