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S & D Update

Thanks to Kirkrrt, of course.

Last week, I posted a bit of a rant about this nation's ability to export distillates at record levels lately.

It raised my blood pressure a bit, but so does, well, everything.

This morning, Kirkrrt got around to it and had this to say in the comments:

I hadn't sat down with the article you quoted until today and my head spoded just as you predicted it would.

Diesel exports in April 2008 were up 186% over April 2007.

The cost of diesel is directly responsible for a large portion of the increase in food prices. NOT because it costs the farmer more to produce it, but it costs more to transport it to the store.

Domestic demand diesel was down and production of diesel was up. The refiners are making money where they can so I guess we can't be angry with them, but it sucks.

Well, it does cost the farmer a bit more due to the farm equipment sucking down the same fuel as the truckers, doesn't it?

Meanwhile, the record profits will continue until it's time to try and get McCain into office. (tinfoil alert!)

And don't, please, don't tell me who I can or cannot be "angry" with, Kirkrrt.

Try it sometime. You might feel better.

Comments

You misunderstood my comment about farmers.

There are people on TV "news" networks that imply farmers pass on their increased costs adding to the increase in food prices. There are tens of millions of people in America who believe this crap.

My point is that farmers do not set the price of their output, but sell it on an open market and have to accept what price the market bears.

I remember fall 1985 when the price of corn was the same as 1932. Luckily I was safely cocooned on a hill in south central MN. Unfortunatley my father's agricultural construction company didn't last another year.

Yeah, farmers get screwed when the weather's bad, when the weather's good, and everywhere in between...

Understood.

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