...while in Europe, government has chosen not to feed feedstock.fuels

Ethanol prices are now trading in line with gasoline prices for the first time since late August and, fueled by the new U.S. energy bill, are likely to rise further, Citigroup said in a recent report. "We firmly believe the new energy bill will serve as a significant catalyst to the ethanol industry, as the higher mandated ethanol levels stipulated by the new renewable fuel standard should serve to bring ethanol supply and demand back into balance, thereby strengthening ethanol's pricing fundamentals," said the report. marketwatch.com

Europe's mainstream bio-fuel experiment takes form of biodiesel, which fuels many cars on the road in Europe.

The price for their main feedstock, rapeseed, has risen more than 50 percent since the beginning of the year. But the price of the final product, biodiesel, has plunged, because producers are churning out far more biodiesel than the market can absorb.

Similar conditions hold sway among U.S. ethanol makers: heightened corn prices combined with an ethanol glut. But U.S. producers are celebrating while their European counterparts exude gloom. Why the difference?

That's an easy one. In the U.S., the government is playing Santa Claus, while in Europe, governments are responding to industry demands for more goodies with a cold stare... gristmill.grist.org

I was talking to a farmer down in Springfield Township this week for a story. He was complaining that the price of feed for his animals has doubled this year.