Liberal Agricultural policy?

[cowman]

You are comparing apples to oranges? Ethanol and bio deisel are not food products, they are energy products.
What happens if the government sets up a farmer co-op to produce ethanol or bio deisel and then mandates a 5% blend?
Either the oil companies are going to produce their own or buy it from the co-op cheaper than they can produce it? I don't believe the government could force the companies to buy it from a farmer type co-op?
As a taxpayer I would certainly not want my tax dollars going into a government funded industry that would not be able to compete without massive subsidization. If it is such a rosy financial proposition then the proposed ethanol/biodiesel co-ops should trot down to the local bank and see what they think? That is sort of where the rubber meets the road and the dreamers get a true dose of reality?
How fair is it for any private business to have to compete with taxpayers dollars? How would you like it if the government set up a state farm beside you...a farm that did not have to make a profit, but lived on the taxpayers dollars, expanding on your formerly rented land, driving up the price of fertilizer and other inputs in your area? Selling their product at a loss? Is that fair?

[farmers_son]

Perhaps we were thinking of different things. I read back and see the quote of Kevin Hurst did mention ethanol.

To respond to your comment...Government is involved in private business all the time if no other way than taxation. The example that comes to mind is Hutterite colonies that do set up beside my farm and compete for land and equipment without paying income tax. Sorry to bring up a Hutterite example but it is year end and I am working on books to try and figure out where I am tax wise.

Government is involved in all areas of agriculture even if they do not set up a farm next door. Dairy farms compete for feed and sell cows into the beef market while having a special status through marketing boards. Chicken is supply managed and competes for consumers dollars with beef. Government allows or disallows foreign companies into Canada at their discretion changing the dynamics of the marketplace.

I have not researched the ethanol bio diesel issue very well but there may be environmental benefits. I have not too much love for an oil company and would not loose much sleep if government worked to create an alternative energy source.

[cowman]

Personally I think alternative energy sources are a good idea. Keeps the oil and gas sector on their toes and makes them compete.
The problem is all these alternative energy sectors do need some seed money to get the technology up to snuff so they can become a viable option.
We seem to have too much grain in this country and no place to sell it. Rather than putting the farmers on the dole it might be helpful to create a market for some of this surplus grain and at the same time help reduce pollution? Both ethanol and bio deisel are pretty clean.
I truly believe we can't keep ruining our environment at the rate we have been doing.
I am involved in a small way in a process that should see at least one bio digestor being built in my area. It is not cost effective and will rely heavily on government money for starting up. Unfortunately big business is not all that interested yet, but hey you have to start somewhere?