Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
It's good to have a board member literally on the ground. FWIIW, I also followed Ted's advice about hanging on to healthcare; while I did give HQL the boot after holding it for a long time, I moved into BME and RYH. The Black Rock fund has held up remarkably well during the recent turbulence.
Don't know if this helps, but according to Scientific American:
"Today’s corn crop is mainly used for biofuels (roughly 40 percent of U.S. corn is used for ethanol) and as animal feed (roughly 36 percent of U.S. corn, plus distillers grains left over from ethanol production, is fed to cattle, pigs and chickens). Much of the rest is exported. Only a tiny fraction of the national corn crop is directly used for food for Americans, much of that for high-fructose corn syrup."
I have some acquaintance with corn. Most of what's grown in the U.S. is called "field corn" by farmers and is intended for animal feed, ethanol, etc. Not very tender, tasty or appealing on the dinner table. I'd imagine that the corn that ends up on your plate is much harder and more expensive to grow and more prone to loss from insects and disease. (But it can be downright yummy)
On another note, I have yet to hear a qualified mechanic tell me ethanol is better for your engine than petroleum based fuels. In some engines it can cause damage. Avoid it in small engines (lawn mowers, etc.) if you can. I think the push to 10% ethanol in motor fuels (recently raised to 15%) is an unabashed appeal for the farm vote. Both parties have played that game over the years.
I have been using regular ethanol-free gas, $4 per gallon, for my yard equipment. Only one station carries it and it's 20 miles away. A few years ago, premium ethanol-free was sold here in MI, but no longer. I hate putting ethanol in my 1993 300ZX because of risk to its old-style injectors. I put in an additive with each fill-up and hope...
@BenWP and @Mark etal I've watched Market to Market over many years (being in and around farms in our part of Michigan). I worked on farms as a young one and periodically follow this IOWA public tv production. If one wants to have the weekly take on whats going on in farming, this is a place to check. Available on many farming area public stations, but always online at the link.
As to ethanol. Should not exist from corn production. Legislation started in 1978, and one of our U.S. Senator's is still for this.......in spite of her being generally okay; but a big helping hand to MI farming. Several years ago (no longer I think), the window sticker on new vehicles placed the MPG for regular gas and ethanol. Ethanol was always much lower MPG; as the product has low energy output compared to regular gas. So, duh; spend a boat load of money to produce a less efficient fuel. ALSO, this does cause problems, especially with lawn care devices. I cleaned too many carburetors of the "green, jello like slime". I now always do add a gas stabilizer to the fuel for these devices. A perfect case of the government having a serious case of "cranial-rectal" inversion. Subsidizing a few, with grief to many............well, except the small engine repair folks. I sent our Senator numerous mails about this BS, but only received the normal thanks for your comments.
Don’t know if it’s true anymore. But a long time MI farmer with what would have been considered a “big” family owned farm in the 80s or 90s told me once that “the name of the game” was “playing the government.” That’s how he made money. I supposed it had to do with land-banks, help with loans, or maybe subsidies. But as the ethanol issue shows, govt. influence is still there and impacts the bottom line.
And this, “During the Great Depression, with thousands on bread lines, farmers were instructed by the New Deal Agricultural Adjustment Act to produce less food in order to stabilize food prices and restore the market economy. Fruit was left to rot on trees, crops were plowed under, and millions of piglets and sows were slaughtered and discarded. Many Americans saw the government action as a senseless waste of food that left the hungry to starve ...”
@catch22: I noticed our senator's ads during the campaign stressed her support of agriculture, not that I really understood what she done for farmers. I was surprised that the Republican candidate did as well as he did.
<“In the end, the beans are going to move someplace, it’s just question of at what price,” he said. “It’s like a big game of musical chairs, but it’s not something you would draw up in an economics class as a model of efficiency, that’s for sure.”> Derf
Comments
Meanwhile, worsening for others:
https://www.nytimes.com/2018/11/19/us/politics/farming-trump-trade-war.html
https://pbs.twimg.com/media/DscxvhbV4AEQ1Ps.jpg:large
"Today’s corn crop is mainly used for biofuels (roughly 40 percent of U.S. corn is used for ethanol) and as animal feed (roughly 36 percent of U.S. corn, plus distillers grains left over from ethanol production, is fed to cattle, pigs and chickens). Much of the rest is exported. Only a tiny fraction of the national corn crop is directly used for food for Americans, much of that for high-fructose corn syrup."
I have some acquaintance with corn. Most of what's grown in the U.S. is called "field corn" by farmers and is intended for animal feed, ethanol, etc. Not very tender, tasty or appealing on the dinner table. I'd imagine that the corn that ends up on your plate is much harder and more expensive to grow and more prone to loss from insects and disease. (But it can be downright yummy)
Here's the Scientific American link: https://www.scientificamerican.com/article/time-to-rethink-corn/
On another note, I have yet to hear a qualified mechanic tell me ethanol is better for your engine than petroleum based fuels. In some engines it can cause damage. Avoid it in small engines (lawn mowers, etc.) if you can. I think the push to 10% ethanol in motor fuels (recently raised to 15%) is an unabashed appeal for the farm vote. Both parties have played that game over the years.
Does the government still subsidies E production ?
Derf
thanks; of course; what was I thinking? not like 65y ago in SW Ohio
Regards,
Ted
https://www.reuters.com/article/us-usa-trade-china-grains/harvesting-in-a-trade-war-us-crops-rot-as-storage-costs-soar-idUSKCN1NQ0GA
I've watched Market to Market over many years (being in and around farms in our part of Michigan). I worked on farms as a young one and periodically follow this IOWA public tv production. If one wants to have the weekly take on whats going on in farming, this is a place to check. Available on many farming area public stations, but always online at the link.
As to ethanol. Should not exist from corn production. Legislation started in 1978, and one of our U.S. Senator's is still for this.......in spite of her being generally okay; but a big helping hand to MI farming.
Several years ago (no longer I think), the window sticker on new vehicles placed the MPG for regular gas and ethanol. Ethanol was always much lower MPG; as the product has low energy output compared to regular gas.
So, duh; spend a boat load of money to produce a less efficient fuel.
ALSO, this does cause problems, especially with lawn care devices. I cleaned too many carburetors of the "green, jello like slime". I now always do add a gas stabilizer to the fuel for these devices.
A perfect case of the government having a serious case of "cranial-rectal" inversion.
Subsidizing a few, with grief to many............well, except the small engine repair folks.
I sent our Senator numerous mails about this BS, but only received the normal thanks for your comments.
Regards,
Ted
https://www.reuters.com/article/us-usa-trade-china-grains/harvesting-in-a-trade-war-u-s-crops-rot-as-storage-costs-soar-idUSKCN1NQ0GA
http://www.iupress.indiana.edu/product_info.php?products_id=807395
https://www.axios.com/soybean-tariffs-new-shipping-route-3ae02f6c-4b9f-4435-8eb1-e5601f5d2e77.html
Derf