Ethanol Mandates May Spike Food Prices, Economists Warn
Consumers could soon be paying a lot more for meat, milk, eggs and other farm staples
if bad weather withers a U.S. corn crop that is now tethered to grain-intensive renewable fuel mandates, a new University of Illinois study warns.
A corn shortage, coupled with surging demand to meet government-ordered ethanol standards, could push cash prices to $7 a bushel, the study found, squeezing livestock producers and spiking grocery prices. The study warns that federal policymakers need to forge solutions now to cushion the blow of a shortfall that history shows is a matter of when and how severe,…