Ethanol from Corn

In the U.S. politicians in both parties have jumped onto the bandwagon of ethanol from corn as the panacea for our energy problems. However, this is just not the case. There are even differing studies as to whether corn ethanol produces more energy than it takes to grow corn and convert it into fuel. One study (Science Daily, July 12, 2006) simply states it tracked the energy needed for growing and converting corn to fuel and that ethanol provided 25% more energy. Another study (Science Daily July 6, 2005) was more specific and said the detailed analysis done included the energy used in producing the crop, including production of pesticides and fertilizer, running farm machinery and irrigating, grinding and transporting the crop and the production of the ethanol. This latter study found that it took 29 percent more fossil fuel energy than the fuel produced. Neither study took in to account the energy required to try to manage or clean up the pollution caused by the production of fuel from corn. Other problems are the greenhouse gases produced in the process and the ground water and runoff pollution from the fertilizers used. There is already a large dead zone in the Gulf of Mexico from the runoff of fertilizers that is killing plants, fish, shrimp and other sea life. Another problem is the increase in food prices from diverting corn from animal feed to fuel. Meat, milk and eggs have been directly affected and other foods as well since corn by-products are in many foods. The recently passed and signed energy bill mandates a seven-fold increase in the production of ethanol from both corn and cellulosic sources. Ethanol from cellulose, corn cobs, wood chips, prairie and other sources may not require as much fertilizer but also has problems. Ethanol as a liquid fuel has other problems in that it degrades and can not be transported by pipeline but must be transported by truck, etc. More at a later date.

Tips

Many of my tips for improving ones finances and remaining as debt free as possible are either common sense or have been given by many sources or both, but because of that it is sometimes easy to ignore them or put them off. It is very important to incorporate as many as one can in order to reach financial goals in life.
* Start saving and investing as early in life as possible.
* Always pay credit card bills in full each month; never incur any credit card debt. If you can not afford to pay for something do not buy it unless it is absolutely necessary to eat, maintain shelter or preserve health.
These two are the most essential and most effective. The following are helpful.
* Shop and stock up on non-perishable foods when possible.
* Take advantage of sales and rebates whenever possible on things you must have or really desire; don't buy anything on sale just because it is a good price.
* Use coupons but only on things you will actually use.
* Eat out only on special occasions and avoid the expensive habit of getting a specialty, or any coffee, at a high priced coffeehouse everyday.
* Plan outings and shopping trips to avoid unnecessary trips and distances.
* The days of taking a drive just to take a drive are gone, unless you are a multi-millionaire, being just a millionaire is not enough these days. Take a walk instead, it is better for you.

Useful Information

Disclaimer: The following information is in no way meant to be complete and there is no guarantee given or implied that it is accurate. It is solely intended to draw the reader's attention to the information for their consideration and further research.
Dividend Dates:
For cash dividends:
Declaration Date: Date the board of directors announcers that the company will pay a dividend.
Ex-dividend Date: On, or after this date, the security trades without the dividend. Buying a dividend paying stock one day before the ex-dividend gets the dividend, but buying it on the ex-dividend date means no dividend. To receive a dividend when selling, the security must be sold on or after the ex-dividend date. The ex-dividend date is the second business day before the record date.
Record Date: Date a company looks to see who owns a security.
Payment Date: Date the company pays the dividend. This is set by the company and can be anytime after the company has sufficient time to ensure accuracy of the payments and varies from company to company and dividend to dividend.
Dates for dividends payed in the form of stock may differ from the above and should be checked in each individual case by the investor.


Qualified Dividends for Income Tax Purposes:
Ordinary dividends, shown in box 1a of 1099-DIV, are taxed as ordinary income, but qualified dividends, box 1b, are taxed subject to the 5% and 15% maximum rates that apply to net capital gain. If you are in the 25% bracket the qualified dividend rate would be 15% and below the 25% bracket it would be 5%.
To qualify the following requirements must be met:
* Dividend must be paid by a U.S. corporation or a qualified foreign corporation. For information on a qualified foreign corporation see IRS Publication 550 for starters. Roughly to be qualified a foreign corporation must be incorporated in a U.S. possession or be eligible for the benefits of a comprehensive income tax treaty with the U.S., etc. or be readily tradable on an established securities market in the U.S.
* Dividends not listed on as a type that are not qualified, see Pub. 550.
* You must meet the holding period.
Holding period: Stock must be held for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. For a preferred stock, note few preferred stocks pay qualified, it is 90 days during the 181-day period beginning 90 days before the ex-dividend date. As an example if you buy a stock the day before the ex-dividend date and sell it 63 days later the dividend is a qualified dividend if it meets the other requirements.