Drought is driving corn prices to record levels as we continue to burn 40% of our corn in our engines.
Researchers at Texas A&M University have estimated that diverting corn to make ethanol forces Americans to pay $40 billion a year in higher food prices. On top of that, it costs taxpayers $1.78 in subsidies for each gallon of gasoline that corn-based ethanol replaces, according to the Congressional Budget Office.
The damage is far-reaching. Beef and pork producers are slaughtering their stocks at a record pace to cut use of corn feed that costs two-thirds more than three months ago. U.S. cattle herds next year are forecast to be the smallest since 1952, a guarantee of more expensive food in years to come.