2 May 2008 28 views One Comment Print This Post  Email This Post

Photo courtesy r-zand licensed by Creative Commons.

The Washington Post published an article on Wednesday that noted the real reason for skyrocketing food prices and soaring demand:  corn-based ethanol.  A farmer interviewed for the article claims that he’s receiving $5.50 per bushel of corn, which is about the double what he received two years ago.  He says that instead of loading up the corn harvest on a truck for export, he takes it down to an ethanol distillery that he can see from his property where it is turned into ethanol for vehicles.  In addition to the obvious corn, wheat and soy prices, egg prices have risen 40%.

Two leading oil pipeline companies are spending $3 billion to build an ethanol pipeline between the midwest and the eastern United States and, when completed, is expected to carry 3.65 billion gallons of ethanol every year.  Bruce Babcock, professor of economics and the director of the Center for Agricultural and Rural Development at Iowa State University says in the article, “As long as you keep that ethanol industry running, grain prices will be high.  If you didn’t have this large growth in ethanol corn, prices would be nowhere near where they are today.”

Again, this is more proof that the global warming hoax continues to push prices for staple food products ahead and, with little resistance in the government, expect food prices to continue to soar until there’s a revolt here in the U.S. 

Source: www.washingtonpost.com

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