"Hutjens and others said higher gasoline prices have increased the costs of
moving milk from farm to market, and corn — the primary feed for dairy cattle —
is being gobbled up by producers of the fuel-additive ethanol. The USDA projects
that 3.2 billion bushels of this year’s corn crop will be used to make ethanol,
a 52 percent increase over 2006.
Ethanol has increased the average
American's grocery bill $47 since July, and Iowa State University study
concluded."
While I find the finger pointing silly, it is interesting to note how this has effects on the market that spread. As corn is taken out of the food market, the price of corn goes up. The price of other grain crops go up because land that was growing wheat and etc. is turned to producing corn. Also as beef producers and others switch from corn to wheat and oats to find lower prices it increases the demand for those staples. In the end everything from the price of milk, and cheese to bread will increase.
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