Isn ethanol making the price of corn soar, thereby increasing the cost of food?
Food prices are rising due to increased fuel and energy prices (related to increased petroleum costs). Most corn grown in the U.S. is for livestock feed, not for human consumption. When corn is used for ethanol, the leftover corn “mash” is still used to feed livestock. Crop prices across the board are increasing (not just for corn) and are mainly due to the higher the price for fertilizer, pesticides, diesel, and transporting costs. Also, recent studies find a “weak correlation” between corn prices and food costs. Only 4% of the change in the food consumer price index is because of the changing price in corn. Instead, rising energy prices impact food prices significantly more than corn because energy costs impact every product on the shelf. According to the U.S.
