US corn reserves are at lowest levels in 2 decades.
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2/12/11, "Sanity slowly returning to global warming policy," Washington Examiner Editorial
(First part of article cites EU energy commissioner realizing adverse effects of radical CO2 policy)
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"Meanwhile, here in America, the Department of Agriculture reported this week that
corn reserves are at their lowest level in nearly two decades.
Federal officials, according to the New York Times, say the reserves are down because
ethanol producers are buying corn as fast as possible
in anticipation of a federal policy allowing the amount of corn-based fuel mixed with gasoline
- to increase from 10 percent to 15 percent.
The price of a bushel of corn has doubled in the face of that demand, going from $3.50 a bushel to more than $7 a bushel, which drives up food prices more generally.
"The price of corn affects most food products in supermarkets.
It is used to feed the cattle, hogs and chickens that fill the meat case, and is the main ingredient in Cap'n Crunch in the cereal aisle and Doritos in the snack aisle. Turned into corn sweetener, it sweetens most soft drinks," the Times reported. There was
no indication in the Times story that those same federal officials
will do anything about this situation, but at least they recognize the connection between rising food prices and increasing ethanol production.
Rising corn prices in the United States are mirrored worldwide, thanks to growing demand for biofuels in response to
mandates from government officials concerned about
"being green."
The same thing happened in 2008, but the experts dismissed it as a product of an extremely rare convergence of factors that won't likely be repeated any time soon. But, as Princeton University's Tim Searchinger wrote in The Washington Post, "this 'perfect storm' has re-formed not three years later. We should recognize the ways in which
biofuels are driving it.""...
via Lucianne.com, getty photo
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