Wednesday, August 24, 2011

The Price of Corn is Going Up

Source: The Economist
"The price of corn is up by almost a quarter since the start of the year, to around $7.30 a bushel and is forecast to keep rising."

My one day as a member of the Agriculture Policy Committee of the U.S. Government was marked by the discovery by another member that their previous decision on feed grains affected the price of food grains. Everything connects to everything else.

We may see the price of beef and poultry go up, and people in developing countries may see the prices of the basics of their diet go up because of the subsidies we are providing for the production of alcohol for fuel from corn.

"Next season, for the first time, more corn could be used to make ethanol than to provide animal feed."

No comments: