Archer Daniels can survive subsidy cuts

Article Excerpt

ARCHER DANIELS MIDLAND CO. $36 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 637.3 million; Market cap: $22.9 billion; Price-to-sales ratio: 0.3; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, peanuts and other crops into a wide variety of food ingredients, such as flour, oils and sweeteners. The company mainly sells its products to firms that make and process food. It has over 240 processing plants in more than 60 countries. Archer Daniels is also the largest maker of ethanol from corn in the U.S. Ethanol is a gasoline additive that lowers harmful emissions. Growing opposition to subsidies Prominent environmentalists, like former U.S. Vice President Al Gore, are now questioning the benefits of ethanol. As well, the U.S. House of Representatives recently passed a bill that would cut ethanol subsidies. The bill would also reverse a decision by the Environmental Protection Agency to increase the amount of ethanol used in gasoline to 15%…