[M.T. Pockets]

I live in Minnesota, near several ethanol plants. For years we've been hearing how ethanol would be the answer to our nation's fuel problems. It very well may be, but don't count on it lowering your fuel costs.

For example, last year at this time gas was about $1.75. E-85 (85% ethanol, 15% gas) was about $1.45.

Today, gas is $3.11 and E-85 is $2.79. So lets say that the 15% gas portion of this product has doubled, and shipping/transportation is probably another nickel, and cost to produce ethanol another nickel, this should put the price of E-85 at around $1.80. Where is the rest of the price mark up in ethanol coming from ? Demand for the final product.

By the way, ethanol is made from corn. Last year corn was selling for around $1.80 a bushell. Today, it's selling for $1.52 a bushell.

So, as big of a backer of ethanol as I am, I've come to realize that it's not going to help the final user with any substantial savings, nor is it going to profit the corn producer. I do believe there are substantial profits to be made in ethanol between the farmer and the gas pump, and ethanol producers, such as Archer Daniels Midland, are heavily subsidized.

I believe most of us are capitolists, and like it or not, this is capitolism at work.