Federal ethanol-fuel policies forced consumers to pay an extra 0.5 percent to 0.8 percent in increased food prices in 2008, and the government itself could end up paying nearly $1 billion more this year for food stamps because of ethanol use, according to a new government report.
“Producing ethanol for use in motor fuels increases the demand for corn, which ultimately raises the prices that consumers pay for a wide variety of foods at the grocery store, ranging from corn-syrup sweeteners found in soft drinks to meat, dairy and poultry products,” the CBO said.
Also, government-sponsored subsidies and mandates for ethanol to be mixed with gasoline are supposed to help foster U.S. energy independence and to cut down on greenhouse-gas emissions, but only have reduced greenhouse-gas emissions by less than one-third of 1 percent. Read More
I have been saying that food would go up in price because of corn being used for fuel. Not only has my prediction came true, but only have reduced greenhouse-gas emissions by less than one-third of 1 percent.
Do you have an ethanol service station near you? I sure don’t and from what I understand is the government paid high prices for cars and trucks that will run on ethanol but burns reg gasoline in them because there is no ethanol near by most areas! Obama used this issue to gain votes out in the mid-west and at the time knowing that its would raise food cost!