It appears that Kristi Noem is walking a fine line here. She has to support farmers at the same time follow through on her campaign promise to reduce the size of government.
I’m sure everyone can agree that the unrest in the middle east has put our oil supply at risk. One look at fuel prices should tell people that something is wrong. Moving to domestic energy sources is a smart move. At a bare minimum we should:
- develop domestic oil supplies
- develop ethanol technologies (fuel and engines)
- develop other energy sources
Here’s the catch, we are dead broke. Our government is headed for shutdown due to lack of funds. To make matter worse, other countries may not be willing to loan any more money.
Anyone who has worked a budget know, that when you are out of money you have to cut back.
During debate on the House floor, Rep. Jeff Flake, R-Ariz. called ethanol subsidies “a boondoggle for 30 years,” while Rep. John Sullivan, R-Oklacalled the increase to E15 a “backhanded” mandate that has sparked “alarming consumer, environmental and economic concerns.”
The subsidies may not be a boondoggle, When the industry first started it needed help to establish itself. That time has come and passed. It’s time to take the training wheels off the ethanol industry. We have given the industry a great start, it is time to for it go it alone. If the business model and industry is sustainable, it will grow and succeed, if not, it might have to go the way of the personal steam engine makers.