Monday, 22 October 2012 15:22

Ethanol Fuel Inventory Soaring Food Prices

Earlier this year we talked about the failure of the courts to knock down the increasing demands of this administration for more ethanol in gasoline. (And Erika followed up on it last month.) In addition to the risk of damage to the current fleet of vehicles, these policies have also been driving up the cost of corn to farmers. How bad has it gotten? Some dairy farms are closing up shop because they just can’t afford to feed their herds. 

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The corn is going to ethanol and pricing them out of business. And in addition to jacking up the cost of feed corn, it’s hitting pretty much the entire spectrum of food.
 
Cereal and bakery product prices have increased almost 77%
Meat, poultry, fish and egg prices have increased 78%
Fat and vegetable oil prices have increased more than 444%
 
There is, as the first linked article notes, a provision in the existing EPA E10 rules – which mandate 10% ethanol in your fuel – that allows for the rule to be lifted during an emergency. Thus far six states have considered it enough of an emergency to petition asking for the rule to be lifted. The EPA’s response to date has been to stay on course to head toward E15 rules. This way lies madness.
Source: Ethanol spurring new cases of sad cow  --  hotair.com  

 

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