The Ultimate Showdown- Corn vs. Ethanol!

Ethanol has recently brought the farming economy to a new height. It has improved the financial standings of farmers and towns alike. In some places, the economy has grown so much that new schools, police stations, and recreational buildings have recently been built. Because of the aid of small investors these ethanol plants have recently been built, and all of the jobs have been distributed amongst the locals. However not everyone appreciates the change. Some farmers have to now pay more for feed for their livestock, when realistically they may not be able to afford it. For example, the price to feed hogs has risen about forty percent, this will in turn make the price of pork rise so that it will be profitable. Another problem with the production of ethanol is the fifty four cent tariff on imported ethanol and a fifty one cent per gallon tax credit that has been placed upon it, even though Americans are known for their enjoyment of free trade. The balance between the production of ethanol and corn has to reach an equilibrium in order for it to aid both farmers and ethanol producers.

Before America truly enjoyed the priviliged of free trade, the whiskey rebellion took place during the time of George Washington. A tax of six cents a gallon was placed upon the whiskey. This was entirely unfair because many of the whiskey producers were not in good financial standing and by turning the grain into whiskey they were preventing the waste of perfectly good grain, however it made it more difficult to transfer when it was not in whiskey form. The rebellion that occurred because of this tax does not mirror the current anger of farmers, however the taxing and unfairness does.