Even though ethanol uses more energy to produce than gas, causes lower gas mileage per gallon, pollutes more than it helps, and increases the debt the US congress continues the bipartisan ethanol subsidies to big corporations in return for big campaign contributions. The result is higher corn prices which cause higher food prices including meat and dairy products.

By Elizabeth Campbell – Mar 18, 2011 at Bloomberg.com

EXCERPTS:

The higher cost of grain means feedlots without risk- management plans lost about $6 on each animal sold in February, compared with a $20 profit a year earlier, said Ron Plain, a livestock economist at the University of Missouri in Columbia.

“Feed costs continued to rise,” Plain said. “Most cattle feeders were probably surprised by how expensive feed ended up being during the period.”

Even after the price of corn dropped from last month’s high of $7.4425 a bushel on the Chicago Board of Trade, the grain is 73 percent higher than a year ago, reducing the incentive for feedlots to expand purchases of young cattle. Yesterday, corn futures for May delivery rose 30 cents, or 4.9 percent, to $6.465, the biggest gain in five months.

FULL ARTICLE

Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Interested In Further Reading? Click Here