Food price inflation caused by ethanol

The competition for the natiion's corn crop between livestock, food manufacturers and ethanol producers has driven the price through the stratosphere. Corn briefly hit over $7 a bushel and still hovers around $6. To farmers used to $2 corn, this is seriious stuff.

Corn thickeners and sweeteners are used in commercial baked goods, soft drinks and other beverages and candy bars. All are rising in price due to the corn price inflation. Hershey just announced an 11% across the board increase in candy bar prices. This is the third one this year.

Hog, poultry and beef producers all are formulating alternative rations for their livestock, with less corn and more less expensive feedstuffs. Meat prices are high, which should lead to big producer profits, but the high cost of corn and energy makes profits elusive for many farmers and ranchers.

This is all because the federal government subsidizes ethanol to the tune of over 50 cents a gallon, as well putting price supports under corn to boot. This has created the ethanol industry and created the price-busting competition for corn. The government alone is skewing the economy with its unwise ethanol subsidies.

Ethanol is not the best alternative to gasoline anyway, because it takes as much energy to raise and produce it as it returns. It would be completely uneconomic, except for the government subsidies.

Only a few consumers have flex-fuel vehicles that can take advantage of cheaper ethanol, but everyone has to buy food and pay much higher prices for it--all to underwrite the few who profit from ethanol.