Friday, May 18, 2007

ADM Loves Ethanol, The "State Religion"

From The Straight Dope blog: The immediate beneficiaries of ethanol subsidies have been corn farmers and, more significantly, the Archer Daniels Midland Corporation of Decatur, Illinois, better known as ADM. The world's largest grain processor, ADM produces 40% of the ethanol used to make gasohol. As might be supposed, the company and its officers have been eloquent in their defense of ethanol and generous in contributing to both political parties. The politicians have been generous right back. The libertarian Cato Institute estimates that every dollar of ADM's ethanol profit costs taxpayers 30 bucks.

MP: ADM's embrace of ethanol has paid off hanbsomely, see the chart above of ADM's stock price vs. the S&P500. Over the last 5 years, the S&P 500 stocks have increased by about 48%, while ADM's share price has increased by more than 150%.


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