> http://dailynews.yahoo.com/h/ap/20010717/bs/farm_scene_74.html
> DES MOINES, Iowa (AP) - Increasing the demand for soy-based products > such as biodiesel would be a significant economic boon to farmers, > according to a federal report. [snip] > Widespread production of a fuel mix containing biodiesel would have a > huge impact on soybean farmers, even if the fuel is only 2 percent > biodiesel, Andersen-Schank said. Producing such a mixture would > create demand for 600 million gallons of biodiesel oil a year, > produced from 400 million bushels of soybeans, she said. > > Iowa produced 459 million bushels in all of last year. ........... The 600 million gallons from 400 million bushes of soy indicates solvent extraction, necessarily meaning centralized processing, increased transportation costs and inevitable market manipulation. Solvent extraction is so cost prohibitive to small farmers and cooperatives that in all probability only mega corps such as ADM and Cargill will be candidates financially capable of constructing and operating such facilities. Further, this type of centralized processing and market "cornering" results in greater capacity of the processors to effect lower commodity prices paid out to farmers. While farmers get a few pennies per bushel increase at best, the seed mills and all other interim processors will be accruing the vast majority of any windfall from biodiesel manufacture. Worse still, rather than sufficient fuel and feed meal supplies staying in the communities where the oilseed is produced, with excess being exported to outlying locales, farmers tending livestock will be forced to buy back their feed at prices above what they could have paid themselves (12-15 cents a pound, rather than 10-11 cents). Fuel will either have to be "re-purchased" from the biodiesel manufacturer downmarket, or from a local petro-chemical bulk plant. Buying fuel from either of these two sources will almost certainly (read "100% certainty") result in no net savings on fuel expenditures. On the other hand, small micro-processing plants would be able to match market payouts per bushel, disperse 48% high protein meal at a cost of 10-11 cents a pound and fill a farmer's off-road fuel and heating needs for ~$1.10 a gallon. The feed meal and fuel savings (or sales) combined equate to ~$0.60 in revenue generation per bushel above and beyond what they will be offered by the seed mills. Micro-processing could generate a 15% increase in gross sales from oil seeds for farmers and an even greater percentage increase in profit by processing oilseed and biodiesel in local cooperative owned mills. Working under the structure of a centralized macro-processing system, however, farmers can look forward to nothing more than table scraps and tighter control of market pricing in their dis-favor. The most sickening realization to the latter scenario is that while greater windfall tax wealth is generated to each respective state, the farmer will receive relatively nothing. This wealth will be generated via road taxes on excess fuels consumed in transport, property taxes for excess machinery required to meet transportation needs, personal income taxes resulting from excess labor to perform all related transport and a broad array of property and personal income taxes from all supportive industries. Meanwhile, if the historical record is only a marginal indicator, it is more than probable that corporations locating their macro-facilities within a given jurisdiction will receive considerable infrastructure construction and property tax incentives, while the increased burden on community infrastructures such as roads, water, sewer and schools will be born by the existing residents. Unfortunately, state and local governments that are tax revenue driven, will almost inevitably opt for the excessive infrastructure that is incumbent to and supportive of macro-processing and its distribution processes. State and local governments dedicated to the maintenance and sustainability of rural communities through the most efficient streaming of market and tax dollars will opt to promote micro-processing facilities. Todd Swearingen Appal Energy [EMAIL PROTECTED] Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Please do NOT send "unsubscribe" messages to the list address. To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
