Enviroment policy to be unveiled today in SASKATOON

[SASKFARMER3]

Zaphod you dont farm do you lets face it.
If I invest in a plant and its paid for in 16 months and is returning dividends etc to me thats money in the bank. If it slows and ethonol doesnt pay the plants paid for so it folds no big deal read paid for in 16 months. Thats like having my land paid for in 16 months then there is no demand for grain I could pay taxes out of the profit for quite a few years till grain farming returns.
Simple fact is that you as a URBAN person are worried that you will have to finally pay for FOOD>

[Zaphod]

You're absolutely right. I used to farm but don't anymore. Does that somehow make me stupid? It seems I spend my time defending farmers from URBAN people. It's too bad that some folks like yourself are just as short-sighted and like to label everyone. Grow up.

It's true that some plants made a 16-month payback, but that situation is already disappearing. At the rate that plants are being built in the US, they will be producing ethanol beyond their Renewable Fuels Standard. It's true they might bump up the RFS, but you can bet that soon supply will outstrip the legislated demand. What happens then? Do you think they will still allow impots from Canada? Not if they have a democrat government. Even if the tax credit stays in place, it won't be the ethanol maker that gets the whole shot. The fuel companies will start keeping some of that themselves. Good luck then with a 16-month payback.

[JACKFLASH]

Getting back on the topic. I was dissappointed with the announcement.
It should have been minimum 10% ethanol blended,and minimum 5% biodiesel. 2 and 5% barely sc**** the surface.

If were going to do a job lets do it.

[Vader]

Talked to a farmer from Ontario yesterday. He says there are two ethanol plants down there and two more being built. They are intended to use corn (American corn).

Ethanol is value adding. We should not be value adding to US corn. We should be value adding where Canada has a feed grain surplus.

If the entire Canadian ethanol program (5% blend) were premised on wheat it would take about 6 million tonnes per year. That would be the equivalent of a pretty serious drought on the praries each year and would eat significantly into world wheat stocks over time.

[cowman]

And Vader, I hope you see that as a good thing? Canadian farmers cannot continue to grow crops at below the cost of production and hope like hell the government bails them out? If food consumers have an oversupply of food why would they pay anymore? If they won't pay for bread...let them have ethanol!
Zaphod: Of course there will be some fallout as plants come on line? And perhaps, as we get further into meeting the "environmental threat", the levels of the blend will be raised? I believe in Brazil you can get a variety of blends at the pumps and the favorite is 100% ethanol! More power/better fuel economy...according to W5! Of course you need a car built for that...which practically all the new cars in Brazil, are?
Now think about that? How about a future where every car in Canada burns 100% ethanol...well the fact is we would never have to export another bushel of wheat...unless there was a significant bonus!
And yes I do know the corporate world would probably try to squeeze all the profit out of the system...and hopefully we would have a government in place that would bring some real meaningful competition laws and laws against predatory business practices? Corporations shouldn't be allowed to operate like a bunch of robber barons!

[furrowtickler]

Over time bio-diesel will be the most important bio-fuel for Western Canada. It will be eons before thay can replace diesel powered engines. Hybrid gasoline engines are already mainstream. JMO