{"id":28739,"date":"2008-03-20T01:01:01","date_gmt":"2011-05-19T04:05:30","guid":{"rendered":""},"modified":"2011-05-19T04:05:30","modified_gmt":"2011-05-19T04:05:30","slug":"iowa_caller_has_it_wrong_on_ethanol","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/","title":{"rendered":"Iowa Caller Has It Wrong on Ethanol"},"content":{"rendered":"
\n

RUSH: John in Burlington, Iowa, nice to have you on the program, sir, thank you for waiting and welcome.<\/p>\n

CALLER: Yes hi, Rush.<\/p>\n

RUSH: Hi.<\/p>\n

CALLER: Thank you for letting me on.<\/p>\n

RUSH: You bet.<\/p>\n

CALLER: Rush, first of all let me preface my comments. I\u2019m a conservative, I can\u2019t stand the Clintons and Obama, I subscribe to much of what you say, but I have to respond to the ignorance in your comments on ethanol and the price of food in this country and the agricultural that\u2019s behind it.<\/p>\n

RUSH: Well, I\u2019m not surprised that you have this opinion and you\u2019re calling from Iowa about it. The primary story here that I quoted is about California, but it does mention Iowa. Walter Williams is talking about it as a Universal story nationwide.<\/p>\n

CALLER: I\u2019m sure. And from my viewpoint, urban folks like yourself and Walter Williams, and your members, are absolutely uninformed and uneducated and ignorant about the business of agriculture in this country and —<\/p>\n

RUSH: I am one of the biggest supporters of agriculture. I came from an agricultural community.<\/p>\n

CALLER: I understand that.<\/p>\n

RUSH: I live in a town of 20,000 people, maybe 40, it\u2019s not exactly urban.<\/p>\n

CALLER: Well, no, but you\u2019re urbanized now, Rush.<\/p>\n

RUSH: I understand — (laughing) Look, I don\u2019t mean to interrupt — in fact, can you hold? Let me take a break because I\u2019m going to have to take a break in a couple minutes anyway and you deserve more time than this so can you hang on?<\/p>\n

CALLER: Yes, I sure can.<\/p>\n

RUSH: All right, we\u2019ll be back. I\u2019m going to give you some of the stories — details, rather, in this Sacramento Bee story and you can explain why they\u2019re wrong, if you wish, okay? Good. I\u2019m not going to stand in your way. Whatever you want to say will be fine. Okay. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: We rejoin John in Burlington, Iowa. Let me give you just a couple of opening paragraphs here. It might be easier for you to respond to this knowing what it says, because I didn\u2019t detail any of what it said. It\u2019s by Dale Kasler, it\u2019s K-a-s-l-e-r, Sacramento Bee, published today. ‘The cash crunch at Sacramento\u2019s Pacific Ethanol Inc. spotlights the swift decline of an industry battered by too much supply, too-expensive corn and too many increases in plant construction costs. Ethanol — hailed by some as a ‘green\u2019 fuel that would reduce America\u2019s dependence on foreign oil — is in a major slump here and nationwide. Across California, profit margins are vanishing, new plants are being canceled and some existing facilities are struggling. The state\u2019s first major plant, opened in Tulare County in 2005, has suspended operations,\u2019 and it goes on from there. Do you get the drift of this story?<\/p>\n

CALLER: Yes.<\/p>\n

RUSH: Walter Williams, a couple paragraphs from him: ‘Ethanol contains water that distillation can\u2019t remove. As such, it can cause major damage to automobile engines, not specifically designed to burn ethanol. The water content of ethanol also risks pipeline corrosion and thus must be shipped by truck, railcar, or barge. The shipping methods are far more expensive than pipelines.\u2019 Okay. That\u2019s, I think, enough for you to register what your disagreements with both of these pieces are.<\/p>\n

CALLER: Okay. Well, first of all, the — and there are other studies out there, such as the Pimentel study that go through and try and — and designate ethanol as an inefficient product that goes through an inefficient process that actually costs more energy and more money to produce than it does to use.<\/p>\n

RUSH: That\u2019s what Walter Williams\u2019 piece basically says. He says it\u2019s so costly it wouldn\u2019t make it in a free market,\u2019 which is why Congress has enacted subsidies, about $1.05 to $1.38 a gallon, which is no less than a tax on consumers.\u2019 In fact, he says, it\u2019s ‘a double tax, one in the form of ethanol subsidies and another in the form of handouts to corn farmers to the tune of nine and a half billion dollars in 2005.\u2019<\/p>\n

CALLER: Part of the problem with some of these studies, Rush, is that some of their information in there is flawed. You want to talk about bad science? Just one example with the Pimentel study, when they start adding up the cost that goes into producing a gallon of ethanol, they even include a cost for the sunlight that the corn crop takes to produce a bushel of corn. Now, that sunlight is free, and that cost shouldn\u2019t even be included in there. And that\u2019s just one example of how some of these studies are flawed.<\/p>\n

RUSH: How are they calculating the cost of sunlight?<\/p>\n

CALLER: You got me.<\/p>\n

RUSH: All right, here\u2019s — <\/p>\n

CALLER: These are probably some of the same scientists that ascribe to global warming, Rush.<\/p>\n

RUSH: Here\u2019s another passage from Walter Williams. ‘Ethanol is 20 to 30% less efficient than gasoline, making it more expensive per highway mile. It takes 450 pounds of corn to produce the ethanol to fill one SUV tank, 450 pounds of corn is enough corn to feed one person for a year.\u2019 Is that accurate?<\/p>\n

CALLER: The energy figure, I wouldn\u2019t necessarily prescribe as being quite that high. I use 10% ethanol personally, and I have for years. In fact, my last pickup that I had, I had over 242,000 miles on it before it was traded off, and the engine was never touched — and that engine had practically nothing but ethanol run all the way through it, for the lifetime of the truck.<\/p>\n

RUSH: Well, see, my problem with ethanol is that I think it\u2019s part of the global warming hoax, and what has happened is… In fact, I remember, there was a story on the American Spectator website from a person like you who lived in Iowa, who was a Republican and was highly critical of Republican critics of ethanol. His question was, ‘Where do you think Republican votes come from?\u2019 and his point was, ‘It doesn\u2019t matter what ethanol is or isn\u2019t, you need the votes. If the Republicans are to win, we need the votes of people who make money off of it.\u2019 I looked at that, and I said, ‘No, wonder we\u2019re in trouble. Whether it works or not, whether it\u2019s costly, whether it adds a tax, we still — in order to get Republicans elected — have to go ahead and invest in something that may be not at all what it\u2019s claimed to be, not even be beneficial and may be harmful in fact in other areas of the economy?\u2019 That makes Republicans no different than Democrats, if Republicans are going to say, ‘We need to subsidize some of our voters to get their votes,\u2019 they might as well join the Democrat Party.<\/p>\n

CALLER: Well, that part, yeah, I — I\u2019d agree with that. I think another part of the problem is, and — and part of the problem with — that you\u2019re ascribing to the increase in the cost of food is transportation costs. The problem isn\u2019t so much ethanol. There is plenty of —<\/p>\n

RUSH: No, but it\u2019s corn and wheat, and ethanol is taking corn out of the food markets.<\/p>\n

CALLER: No, it\u2019s not. No, it\u2019s not.<\/p>\n

RUSH: Well, are we producing more corn?<\/p>\n

CALLER: We are.<\/p>\n

RUSH: Well, why is the price going up?<\/p>\n

CALLER: Because — partially because overseas demand, partially because where — where gas is concerned, partially — The problem with the price of food is not ethanol, because there\u2019s plenty of corn to go around. There\u2019s plenty of corn to feed our livestock. There\u2019s plenty of corn to go in everything else we use.<\/p>\n

RUSH: Okay.<\/p>\n

CALLER: When corn costs four dollars a bushel — and it\u2019s a little higher than that right now, but I don\u2019t have current figures — When corn costs four dollars a bushel, corn only contributes 28 cents to the price of a dozen eggs.<\/p>\n

RUSH: Okay, so less than a minute here. So what would you say…? Are you an agriculturalist, are you in the business?<\/p>\n

CALLER: I\u2019ve been involved with agricultural all my life, yes. I\u2019m a sales manager in the seed corn business.<\/p>\n

RUSH: I figured. Full disclosure. It was important we get that out. You have obviously an explanation, then, that exempts corn from rising food prices. What is it?<\/p>\n

CALLER: A lot of it\u2019s transportation. Nineteen cents of each food dollar right now goes back to farmers. The remaining 81 cents is spent on labor, packaging, energy, transportation, and marketing.<\/p>\n

RUSH: Okay. By the way, in this discussion of food prices going up, nobody that I\u2019ve heard, and I certainly didn\u2019t mean to imply — nor for you to infer — that rising food prices are going to the farmers and that farmers are gouging. That\u2019s not how agriculture works. That\u2019s not at all what I meant. I\u2019m just saying, we\u2019ve got a lot of stuff going on in the environment that has been promulgated primarily by liberals, to ‘help the little guy and to save the planet,\u2019 and it\u2019s common. The unintended consequences (or the known intended consequences, which is even more sinister) of liberal policies, which all fail, is just a sight to behold. Everybody can see it if they just be honest enough to.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Jeff in Maryville, Tennessee, it\u2019s great to have you with us, sir. Hello.<\/p>\n

CALLER: Ah, dittos from the patron state of shooting stuff: Tennessee.<\/p>\n

RUSH: Thank you, sir.<\/p>\n

CALLER: Well, I\u2019d like to refute what this agriculturalist was saying about ethanol because I own a small business in Jacksonville, and we sell chicken, and Florida Foods —<\/p>\n

RUSH: Now, wait, wait, wait. Jacksonville, Tennessee?<\/p>\n

CALLER: Jacksonville, Florida.<\/p>\n

RUSH: Jacksonville, Florida. You own a small business that sells chickens?<\/p>\n

CALLER: Yes. Well, chicken. We have a wing house.<\/p>\n

RUSH: Okay.<\/p>\n

CALLER: In a seven-month period —<\/p>\n

RUSH: Wait a second. Wait a second. This is something the people of Rio Linda may know that I don\u2019t. What is a wing house?<\/p>\n

CALLER: Well, actually it\u2019s Dick\u2019s Wings<\/a>. It\u2019s kind of…. We sell chicken wings, we sell burgers, we sell wraps. You know, it\u2019s a restaurant.<\/p>\n

RUSH: Oh! Oh, I got it. So you got the wings of the chickens and you prepare them for like buffalo wings and that sort of thing to go out to restaurants?<\/p>\n

CALLER: That\u2019s right.<\/p>\n

RUSH: Cool. Cool. Have you ever thought about advertising on this program?<\/p>\n

CALLER: Well, you know, that\u2019s what I\u2019m doing right now. That is the point.<\/p>\n

RUSH: (laughing) Yeah, without paying for it. Very smart. Okay. Touche. What\u2019s the name of your wing business?<\/p>\n

CALLER: It is Dick\u2019s Wings. It originated in Florida, mainly Jacksonville, Florida; and we\u2019re spreading up through Georgia, South Carolina, North Carolina, soon. So you\u2019ll be seeing us.<\/p>\n

RUSH: Wait a minute, how can you be expanding? We\u2019re in a recession.<\/p>\n

CALLER: (laughter) It\u2019s really hard with the price of chicken these days, too, and that\u2019s what I was going to get to.<\/p>\n

RUSH: Okay, so Dick\u2019s Wings. But you don\u2019t sell retail, right? You sell wholesale?<\/p>\n

CALLER: No, actually we sell retail. We sell directly to the customer, just like Hooters.<\/line> <\/line> RUSH: Like Allen Brothers<\/a>?<\/line> <\/line> CALLER: But Allen Brothers, they\u2019re wholesalers.<\/line> <\/line> RUSH: Well, no, but they sell directly to customers, too.<\/line> <\/line> CALLER: Oh. Okay.<\/line> <\/line><\/a>RUSH: Now, Dick\u2019s Wings<\/a>, it\u2019s a restaurant?<\/line> <\/line> CALLER: Yes, it is.<\/line> <\/line> RUSH: Oh! I thought it was a processing plant. That\u2019s why I was confused. I was thinking, ‘What in the world are you only processing chicken wings for?\u2019 when you said a ‘wing plant.\u2019 You know, a plant to me is a ‘factory.\u2019<\/line> <\/line> CALLER: I wasn\u2019t clear. I\u2019m sorry.<\/line> <\/line> RUSH: That\u2019s my fault. Not yours. You communicated perfectly. I just didn\u2019t know the lingo. But now I do. That\u2019s a learning experience for both of us. What was it, Jeff, you called about? Was it\u2019s about the food price?<\/line> <\/line> CALLER: Well, no, it was about ethanol and how it affects food prices.<\/line> <\/line> RUSH: The guy in Iowa said?<\/line> <\/line> CALLER: That\u2019s right. The liberal in Iowa, because I know that your liberal radar had to be going off because that guy was not a conservative. He was for subsidies and (laughing).<\/line> <\/line> RUSH: Let me tell you something. No, I wasn\u2019t. There are a lot of Republican people in Iowa, and in other corn states that really depend and come to count on these subsidies in any number of agricultural products, and when anybody starts attacking the value of the subsidy, they gotta call and defend it and protect it because they don\u2019t want to lose it.<\/line><\/p>\n

CALLER: Ah.<\/p>\n

RUSH: So…<\/p>\n

CALLER: Well, it\u2019s —<\/p>\n

RUSH: What is your evidence to support your claim on this program?<\/p>\n

CALLER: Well, this is what I got. In the last seven months, our corn oil prices have gone up from $5 to $6.80 a gallon, and a case of chicken has gone up from $44 a case to $62 a case just in seven months.<\/p>\n

RUSH: Ergo, food prices, by definition, are up. Not only retail, but at grocery stores?<\/p>\n

CALLER: But not all food prices. You would expect that chickens and cows would be made probably in the same places, same areas, and with his theory about gasoline prices affecting it, you know, we haven\u2019t had any increase in beef prices. So it\u2019s only things that survive on or are fed on corn. You know, if chickens would eat rice, we\u2019d be a lot better off. We probably wouldn\u2019t be seeing the increase.<\/p>\n

RUSH: Have you tried it?<\/p>\n

CALLER: No, we haven\u2019t but we are switching to rice oil to fry in.<\/p>\n

RUSH: Really, rice oil from corn oil? Have you ever thought about coconut oil? How does that price compare?<\/p>\n

CALLER: You know, I don\u2019t know.<\/p>\n

RUSH: Well, you ought to look into that. Well, the food Nazis may not let you do that. They used to pop popcorn in coconut oil in all the big-time movie theaters, and that\u2019s what gave the theater that great smell of popcorn and the great taste. <\/p>\n

CALLER: Uh-huh.<\/p>\n

RUSH: This two-person unit with a fax machine, called the Center for Science and the Public Interest came out and said, coconut oil clogs the arteries worse than anything, which it doesn\u2019t. So people are now using canola oil in these movie theaters and so forth. But you ought to look into it. It would make your wings taste nothing like anybody else\u2019s.<\/p>\n

CALLER: I\u2019m going to have to look into that.<\/p>\n

RUSH: I\u2019ll tell you what. Look, you know where to get coconut oil. You can find it.<\/p>\n

CALLER: Yes.<\/p>\n

RUSH: Just fry up some wings, or however you prepare them, for yourself and some customers, a test market, and see what comes out. I have no idea what the price of the coconut oil is, so it might be prohibitive.<\/p>\n

CALLER: I had one question.<\/p>\n

RUSH: Yeah.<\/p>\n

CALLER: Was there ever a single subsidy that ever did anything good for the consumer?<\/p>\n

RUSH: A single subsidy that ever did anything for the consumer?<\/p>\n

CALLER: Aside from raising prices.<\/p>\n

RUSH: Aside from what?<\/p>\n

CALLER: Besides raising prices. I mean, most subsidies that I see, if the government gets their hand on anything that should be free market price, the consumer gets hurt.<\/p>\n

RUSH: Well, I\u2019ll give you an answer. I\u2019m long in this segment here, folks. The next one is going to be short. You could say look at the home mortgage interest deduction as a subsidy to the housing business, for example. And you could say that the home mortgage deduction has enabled a lot of people to buy homes. It\u2019s allowed a lot of builders to build homes, and it has created revenue for people. Now, you\u2019ll probably have some people argue that, yeah, it\u2019s a subsidy and that therefore it\u2019s artificial. But you try taking people\u2019s mortgage deduction away from them, and it will be just like farmers trying to take their ethanol away from them. They\u2019re not gonna let you do it. That would be a hard question to answer. I get your point theoretically. I\u2019m going to think about this more. It\u2019s a great question, Jeff. I gotta run. Don\u2019t forget the coconut oil. Try that. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: John in Burlington, Iowa, nice to have you on the program, sir, thank you for waiting and welcome. CALLER: Yes hi, Rush. RUSH: Hi. CALLER: Thank you for letting me on. RUSH: You bet. CALLER: Rush, first of all let me preface my comments. I\u2019m a conservative, I can\u2019t stand the Clintons and Obama, […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nIowa Caller Has It Wrong on Ethanol - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Iowa Caller Has It Wrong on Ethanol - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: John in Burlington, Iowa, nice to have you on the program, sir, thank you for waiting and welcome. 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I\u2019m a conservative, I can\u2019t stand the Clintons and Obama, […]\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/01125111.Par.89380.ImageFile.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#website\",\"url\":\"https:\/\/admin.rushlimbaugh.com\/\",\"name\":\"The Rush Limbaugh Show\",\"description\":\"Excellence In Broadcasting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/admin.rushlimbaugh.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/01125111.Par.89380.ImageFile.jpg\",\"contentUrl\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/wp-content\/uploads\/01125111.Par.89380.ImageFile.jpg\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/#webpage\",\"url\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/\",\"name\":\"Iowa Caller Has It Wrong on Ethanol - The Rush Limbaugh Show\",\"isPartOf\":{\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/#primaryimage\"},\"datePublished\":\"2011-05-19T04:05:30+00:00\",\"dateModified\":\"2011-05-19T04:05:30+00:00\",\"author\":{\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#\/schema\/person\/911066e449df26406b107ca78cbbde0b\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.rushlimbaugh.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Iowa Caller Has It Wrong on Ethanol\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#\/schema\/person\/911066e449df26406b107ca78cbbde0b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f18195e0073013fa0e16b040686c2924?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f18195e0073013fa0e16b040686c2924?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"url\":\"https:\/\/admin.rushlimbaugh.com\/daily\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Iowa Caller Has It Wrong on Ethanol - The Rush Limbaugh Show","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rushlimbaugh.com\/daily\/2008\/03\/20\/iowa_caller_has_it_wrong_on_ethanol\/","twitter_card":"summary","twitter_title":"Iowa Caller Has It Wrong on Ethanol - The Rush Limbaugh Show","twitter_description":"RUSH: John in Burlington, Iowa, nice to have you on the program, sir, thank you for waiting and welcome. CALLER: Yes hi, Rush. RUSH: Hi. CALLER: Thank you for letting me on. RUSH: You bet. CALLER: Rush, first of all let me preface my comments. 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