Do you think wholesale milk prices rising 9% by next fall has anything to do with converting corn into ethanol instead of feed?
Poor Mexicans are having problems buying tortillas because of corn prices rising to unaffordable levels.
Also read a couple days ago that some farmers are having problems getting seed corn because more corn is being planted.
We will probably never know the true cost of our government's little ethanol folly. Besides heavy government subsidies, there is also the increased cost of corn and things made from corn. Ethanol not only raises the price of gas, it delivers lower fuel efficiency. If it was the answer, then why does government put a tax on imported ethanol from Brazil? Is there anyone on FR that still believes this is not a giant gift to Archer Daniels Midland and the grain lobby?
I asked a couple of farmers I know about the seed corn story. Neither mentioned any shortage. They pay cash, of course...