Friday, January 6, 2012

"Ethanol Subsidies Disappear, Mandates Remain" New American

 'The Congressional Budget Office concluded that “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 in soft drinks to meat, dairy and poultry products.”'

"The ripple effect of that government-induced distortion in the ethanol/corn market is expected to raise the price of grains, soybeans and vegetable oil by between 7 percent and 35 percent each year from now until 2017, according to a report issued by the Food and Agriculture Organization (FAO). If this is anywhere close to accurate, prices for these essential foodstuffs could double in five years, putting marginal income people deeper into poverty."

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