Corn Ethanol?

Today about 20% of US corn is used to produce ethanol for fuel. By 2012 it is estimated that 50% of the corn crop will be used for ethanol. This will cause food prices to increase because farmers feed corn to cows for milk and chicken for eggs and hogs for bacon. Also as more acres are planted in corn, less are planted in soybeans and wheat.

We are using ethanol as a substitute for gasoline. This will cause more and more cropland to be planted in corn. Because of the increase in corn prices it will be planted year after year. Before farmers rotated crops in this sequence - wheat, corn, soy.

Expect the price at the pump to affect the grocery store. Bulk items such as food now cost more to transport. The high price of oil causes ethanol to become more attractive, so sugar is converted to ethanol increasing world sugar prices.