Ethanol

03/17/2011 Update

Ethanol Report 2011

9/15/2010 Update

Ethanol Payments History and Projections by Plant

Ethanol 2010 Deficiency Payments

Ethanol Fact Sheet 11

In fiscal year 2010 just ended on June 30th, Minnesota taxpayers made three regular ethanol quarterly producer payments totaling $421,483.40, all to Minnesota Energy, the only plant still eligible for regular payments. For the record, Minnesota Energy, Buffalo Lake Minn. stopped producing ethanol in April of 2010 and could not claim a fourth quarter payment because they closed. This is after receiving about $23 million since 1994 from Minnesota taxpayers. What’s interesting if they would have waited to close their plant on or about September 1st 2010 they would have pocketed about an additional $2 million from Minnesota taxpayers by 9-1-2010, real brains/management, right. So in August Taxpayers paid out the remaining 2010 appropriation, of $9,526,516.60, pro-rata to the remaining 9 eligible plants under the heading deficiency payments. Even as my/state reports show below, these plants have not been deficient of profits or the ability to send dividend payments to the stockholders of these plants! So on August 5th taxpayers sent the FY 2010 payments to the 9 remaining plants who most have been receiving payments since 1994 or before under what has been billed as a ten year program that’s “being phased out”, see you tube and Ethanol tape below from key state leaders.
Then under the fine print, St Paul leaders/legislators on August 19, 2010 sent the entire 2011 appropriation as well, totaling $9,948,000.00, to the same 9 plants or doubling the Ethanol payments in one month, as Schools and local government agencies wait. So after these two payments, the remaining amount calculated as eligible for deficiency payments is $15,013,387.86. At the base budget level of $15,168,000.00, taxpayers in FY 2012, or in July of 2011 will send the last of $330 million to end the program to St Paul’s ethanol Friends. All seen by Clicking this link/History of Payments! By Alan Roebke (REB-Key) An Analyst who is not allowed to speak in today’s Journalistic/Establishment ranked and approved society!

August Deficency Payment 2010 column
Ethanol Payments history and projections by plant
Please listen to Minnesota’s Legislative Leaders address the issue of ethanol subsidies.  Commonly preformed in todays political world governed by special interest.  See how the conveners and servers of todays special interest, spin the 10 year Subsidy issue to please their Ethanol friends and temper the public.  This tape is from the program ”Your Legislators”, seen on Public TV in outstate Minnesota (early 2009).  Then review the State ethanol plants financial reports and Legislative Audit report below.  Financial info our legislators ignored and the Governor saw no need to un-allot.  All info that paints a clear view of why we need to end state ethanol Subsidies now!  All while still supporting the needed alternative fuel ”Ethanol“.  As again we face $2.80 gasoline and our continued disastrous State & National energy policy that fails to address reality!

New request to Governor Pawlenty 8-4-10: The plants still receiving Subsidies in August 2010 have received enough taxpayer money to easily pay for the cost of their original 15 million gallon plant or over $25 million each.  Yet Winthrop the most sucessful, is now a 100 million gallon plant but will still receive another $811,000 from taxpayers !!!!  Alan 

News Release

To: Governor Tim Pawlenty on 8-4-10 

Stop tomorrows Ethanol Payments:

Governor: Please immediately un-Allot or stop/hold the electronic transfer of almost $10 million in Ethanol Producer Payment Subsidies scheduled for release to nine extremely successful plants. How can you allow more tax dollars to be sent to these 9 successful plants with a State budget clearly short by billions of dollars?

You and my fellow Republicans can go to www.CongressionalChange.com and click on Ethanol and see for yourself the numbers of State Legislated waste by the leaders of the last legislative session. The subsidy numbers listed at my web site, can not be ignored by Republicans or any true conservative like myself, who believe Republicans must Govern by the numbers. So it’s clear to those who vote on our side of the ballot, understand it’s no longer business as usual if you vote Republican in 2010.http://www.congressionalchange.com/wp-content/uploads/2010/08/deficiency-calculations-2010.pdf

So today I’m calling on Tom Emmer and all Republican Candidates to step up to the plate like Alan Roebke (REB-Key) and call you today, to stop these unneeded payments. So those who vote Republican in 2010 know the pork will be cut and pigs the will be weaned when the new Republicans take over Congress and the Legislature in Minnesota in 2011.

Sincerely

Alan Roebke, Republican Candidate in the August 10th Primary in the 7th CD of Minnesota. “The Candidate ready to lead” and “Collin Peterson’s worst nightmare”. P.S. sorry for the short notice but in the past these payments were released after the 15th.

Now see the actual financial numbers below, that members of both politcal parties and the Governor could ignore!  Because as one legislator told me, a long term “deal” had been cut with the “country mice” and the ‘Big City Rat’s”!!!!!  So the question should be for Minnesota taxpayers!  What wasteful policies are we funding for the “Big City Rat’s” from this Ethanol deal, cards up please ????  Or will the “Capital Dealers” just double down with a second hand, to confuse the voters and protect their jobs at our continued expense, all to get by the fall elections???

Ethanol report 6 2010 – See State report page # 6 for Investor Patronage Dividends and Subsidy totals for years 2009 & 2008 and see total report!

Ethanol Balance Sheet in MN. 2007 – See State page # 9 – Patronage Dividends and Minnesota Produce Payments for years 2007 & 2006!

ethanol report 2 2006 – See State page # 9 of Report for 2005 & 2004 financial Info on subsidies and investor dividends!

Ethanol by plant 09 session

http://www.auditor.leg.state.mn.us/ped/pedrep/biofuels.pdf See Legislative Auditor page # 81-85 not PDF # or (bookmark Chapter 5-state subsidies) for legislative Auditor view of Minn. Ethanol Subsidies!  Note in the report $619 million in 5 year profits and $93 million in state subsides sent out! ( Also note the TV ad said 6 years of profits (still at about $619 Million in combined profits) and subsidy on over 6 years of  $107 millions.  Yes, 2009 was a breakeven year for the combined 10 plants reporting but the dividend distribution was still large and I believe the 2010 report still shows a combined pool of dividends still awaiting distribution of another $93 million!) While the auditor recommended/suggested ending subsidies, just like me!  Note: The Auditors only expertise is numbers, so should Minnesota still continue ethanol subsidies based on the numbers is the question.  The other issues the legislature assigned him to report about ethanol, again shows we have no leaders in St. Paul only Conveners!  For the auditor is not qualified to address the issue of energy or ethanol policy!  Which will forever be debatable but the facts show today we can put 10% corn based ethanol in all the nations gasoline and should, just like we do in Minnesota.  While still feeding America and the hungry of the world at a reasonable cost.  So today the confusing  open social debate about “Ethanol” and BIO-fuels, only empowers Big Oil and the ever changing Greenee’s, with Big Oil profiting and the Greenee’s collecting deductable contributions for themselves and sometimes the publics good!

Now See the Plant totals below still on Minnesota’s Ethanol Producer Payment Program “as in Subsidized Plants”! (FY the law says they received their 1st payment) ?? Last listed Millions of dollars is the total remaining payments to each plant if program doesn’t end.

1 Agra Resources–Glenville/Albert Lea Mn. (1999) $4,416,970.44

2 Agri Energy–Luverne Mn. (1999) $4,416,970.44

3 Al-Corn–Claremont Mn. (1996) $3,697,899.22

4 Central Mn–Little Falls Mn. (1999) $4,416,970.44

5 Chippewa Valley Benson Mn. (1996) $3,446,657.70

6 Corn Plus Winnebago Mn. (1995) $2,319,132.57

7 E2000 Bingham Lake Mn. (1998) $4,416,970.44

8 Heartland Winthrop Mn. (1995) $2,939,362.77

9 Pro Corn Preston Mn. (1999) $4,416,970.44

Total $deficiency payments still remaining $34,487,904 as in $34 million!!!!!!!  Now see below Patronage “Dividend distribution” to plant investors since 2004!  Noting: this does not list “dividend distribution” before 2004, only 2004-2009 or 6years!

$54,552,106 for 2004 or  $54 million

$68,965,015 for 2005 or $69 million

$110,815,544 for 2006 or $111 million

$165,026,495 for 2007 or $165 million

$107,104,685 for 2008 or $107 million

$38,763,268 for 2009 or $39 million

For a total Dividend distribution to investors of $545,227,113  or $545 Million since 2004!!!!!!!

In this same period Minnesota taxpayers gave these very profitable plants $107 million in Ethanol subsidies. Which clearly enhanced Profits and Dividends for a select group of mainly Farmer investors!  So would not have $512 million in markets profits been enough for these investor for 6 years.  Did St. Paul really need to add $107 million to get the total profits to $619 million?  Give your Legislators and the Governor your view please!

Now a look at my review of the Video: So if it was a truly a 10 year program as Rep. Seifert and most State leaders (Both Democrat & Republican) have said over the years.  Also confirmed by the Sviggum tape below from 2007 on Am 1280 the Patriot, which I called into.  Please click below on this interesting 8 minute tape on the one-sided ways of todays talk radio, best described as controlled or Jerk Radio!

So why are Minnesota taxpayers still sending out Millions in payments? When the latest restart shows, yes restart of the 10 year clock was 1999 as listed above by state data!!!!!!!  Which should mean all plants are off the program right, wrong as shown about?

Listen to former Speaker Sviggum in 2007 on AM 1280 ”Ethanol Subsidies” 3.5 minutes in on interesting view of legislative sides!  More 10 year spin to temper the public and assure it’s almost phased out! -> Ethanol tape

Then why didn’t any of the other leaders on this Public TV program “Your Legislators” object to Seiferts statements or the stock Capital answer? The answer I believe is, they are all in Bed with the Minnesota Ethanol lobby and are all special interest pro’s!  Just look at how Senator Clark smiles and nod’s and allow’s the subsidy game to continue and as if the ten year program is almost over.  There is only $50 million left or $34 million today, chicken feed, right!  For both Republicans and Democrats, are all fighting to receive those prized special interest political dollars.  All for their next campaign and continued games playing with taxpayer dollars.  For life is just theater, not reality, right?????

What is really interesting is that our Legislature restarted the ten year clock, which is never disclosed by anyone in St. Paul that I can recall.  This was done to shovel more Minnesota tax dollars to their powerful and wealthy Ethanol friends! Please note the last dollar number listed is what our leaders call deficiency payments or their way of a complete pay out of the program for the privileged on ethanol subsidies! These deficiencies are the political scheme to see the maximum amount of taxpayer money in the original law is handed out or fulfilled. But originally, back when the policy was put in place, all these plants actually needed state help because of our disastrous U.S. energy policy. Yet by 2003,at the latest,, the subsidy money was no longer needed based on investor returns and now state ethanol data reported and shown here proves that. But when Pawlenty wanted to cut the program in 2003, Democrats quickly picked up this green/renewable/powerful political football and the race was on to please the Ethanol lobby at any cost. No un-allotment pen here from the Governor, when the political game changed! For good “Politics in Minnesota” always trumps sound policy, right, isn’t that what you vote for?

What’s also interesting in Seiferts comments are that we would not want a plant to close and lose 200 jobs and hurt their lender, right. Yet with the Ethanol boom of 2005-2008, if a lender did not get paid off, it’s not a Minnesota taxpayer problem! And believe me, as the largest individual investor in one of these subsidized plants, for a while not today, the banks were covered with a two year comment of investor corn, regardless of production and the state subsidies!  Plus the Ethanol reports listed here, clearly show almost no long term debt or any real debt and the debt could have easily been retired with a slightly smaller dividend check to investors, which the banking agreements also controlled! Now remember above posting, the financial reports show over $500 million passed out as investor dividends with more handed out before reporting was required.

See News report below on one of the states newer plants not on Subsidies:

“The slumping ethanol market can be seen in the financial results at Granite Falls Energy, which opened a 50-million-gallon ethanol plant in late 2005. Revenues in its most recent quarter fell to $23 million from $29 million a year ago. Profits plummeted from $15 million to $2 million. The company’s year so far is mixed, with profits down 28 percent for the first three quarters on a revenue gain of 15 percent, to $74 million.

Still, the company paid off its construction loans in June, four years ahead of schedule.”

Plus the 200 jobs Seifert is talking about is at the Corn sweetner plant in Marshall, ADM, formally MCP plant. Which uses all of the components of the corn kernel. Producing bran, starch, oil, ethanol, etc., with fructose corn syrup their main product for beverages as Seifert pointed out. Yet the nine remaining subsidized plants and the main reason for the Producer Payment Program was for the true ethanol plants to be built.  Also known as dry mill plants, with animal feed as the main by-product. Plus when Minnesota Energy closed in April 2010, press report show 20 jobs lost not 200!

What is also interesting is the only plant that was still on regular subsidy payments in 2010, was Minnesota Energy in Buffalo Lake Minnesota. Which actually closed its doors this April of 2010, after receiving $147,000 in State ethanol subsidies dollars in February 2010, yes that’s right!

Minority Leader Senator Senjems comments are also very interesting, when he said I think Clarmont is off the program. When in fact after the “Your Legislators” program aired in (I believe) early 2009, Senator Senjem should have known his good old boy’s in Clarmont (see above), still had checks coming in August of 2009. And still have checks totaling $3.7 million for the Senator to put under their door in FY 2010 thru 2013 if we don’t end the program!

House speaker Keliher is also interesting, with the help of the “Your Legislators” Host, Supreme Court Justice G. Barry Anderson as he/she try to justify the subsidies as a contract and commitment issue. When in fact when I attended the Legislative audit report hearing in St. Paul on Ethanol subsidies. (Also posted hear and please review and yes I tried to speak at the hearing but as usual, only the experts/not, in the legislature could speak or question the report ) The legislative Auditor said the legislature is not in the contract and commitment business. They are law makers and when needed can repeal any law or subsidy. Which also brings up the question, with all the talk and outcome of former Senate leader Dean Johnson (remember) talking to a Justice. How can a Supreme Court Justice be on a political program to help justify poor public policy by State leaders??? Is that the way the Supreme court seal should be used or justified? I don’t thinks so! And my letter on the issue to the Judicial review board challenging his hosting, just blew me off with meet and beat statement, yet should be challenged by all in my view!

Speaker Keliher also showed her lack of knowledge talking about Cellulosic ethanol as the fuel of the future. When in fact the U.S. has no commercial plant at this time producing economic volume or any profits or up and running on a true commercial scale and all the Minnesota plants are built for corn. See Poet ethanol story in Iowa how far from reality even the nations top ethanol company is.  For they are still just experimenting with the issue/pipe dream and plant at —http://www.emmetsburgnews.com/page/content.detail/id/502408.html?nav=5001#

One very important note.  We still need Ethanol and yes I’m a very strong supportor of corn based ethanol at the 10% level.   Great for Minnesota, our Farmers and rural America and the Nation but with some simpe policy changes needed.  For with $2.80/gallon gasoline  again, we must remember, without corn based Ethanol $4/gallon gasoline would have been $6 or $7 gasoline like Europe!!!

Plus when I started writing letters to all state legislators only one responded.  Plus a few introduced boneheaded legislation to end the program but all had add on’s which made no sense.  Like ending the 10% blend mandate, which gives the public the only clean air and a true alternative fuel to foreign oil or Big Oil profits.  So after Minnesotan’s investing 300 plus million to build a needed ethanol industry and energy source for Minnesota and the nation and still needs now more than ever!   The clowns that opposed ethanol in general (The Friends of Big Oil or Free markets for Big Oil to Control)  made even less sense than continuing subsidies.   Example, 114 octene ethanol has been selling again for up to 60 cents per gallon wholesale cheap that 85 octene gasoline.  Yet when the 10% ethanol is added big oil has the 87 octene fuel consumers need.  Yet at the gasoline station every point of octene sold receives a higher price from consumers.  And yes,  Speculators and Big Oil sets the price of ethanol more today than the price of corn or the actual ethanol producing plants!!!!!   So take that to the governing fools in St. Paul and D.C.!!!!!!!

So just like Washington D.C., a lot of talkers in St. Paul and few thinkers and no knowledge of sound policy to be found.  Two-hundred Politicans but few if any leaders in St. Paul, just like D.C.!  Plus none of our elected officials wanted “me” to address/speak the simple need to end the State ethanol subsidy program and start addressing our disastrous Nation energy policy.   And yes, Minnesota must lift the Nuclear ban for plug electic hybrids cars, are the cars soon of the line, as in the Chevy Volt and many more but where will we plug-in at, St. Paul and D.C???  Alan Roebke (REB-key)   P.S. Yes your financial support is needed if you want sound, middle of the road, cost contained public policy.  Also see my Hybrid vehicle to make private health insurance a reality for all in 2010 and not start in 2014 or 2015 like the Obama plan.  Yes send to– Box 333 Alexandria Mn 56308

State Ethanol Fact Sheet

Footnote:This does not include Mn Energy because it closed on poor margins, bad design and too small this April, See Huchinsonleader story. Yet it has received over $20 million in State ethanol subsidy dollars under the program but is now out of the subsidy program because of closure just like the Morris Mn. Plant which also received millions before closing.  Yet do you remember the Star Tribune report on one set of owners of the Morris plant which made I believe something like $8 for each $1 invested.  For they structured the business as a LLC that I talked about on my Radio program and not a COOP.  So when offered big money in the ethanol boom, stockholders could vote their shares and cashout!  Which never would have happened in a COOP!!!!!!!!