Mohacsy's Safe Portfolio Member Forum

[elena_murooni]

I believe that when the "energy to produce" equation is made, they consider the energy to produce the machines used to plant, cultivate, & harvest the crop right along with the here-and-now energy consumption to propell those machines. That doesn't mean everyone will be using older machines, but it does mean that some of the costs are already behind us. Keep in mind that those older machines are not fuel (or environmentally) efficient.

Most farmers already had the capital investment in machines behind them when the rush for corn came into play. In Kentucky, our legislative body passed laws which require certain buses, machines, & state owned vehicles to move to biodiesel and alternative fuels. Of course, that mandate meant "sure money"... and the race was (and is) on.

I have to agree with your firm regarding their reasons for shying away from that investment. However, there will arise a winner from the other biofuels within our lifetime. Nothing wins the comparison of BTU's against oil but they can certainly be used as alternatives.