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August 16, 2012: Drought, Food Prices, and Ethanol

Severe drought in the Midwest has driven corn prices to record levels. Policy Analyst Brian McGraw argues that ending the federal government’s ethanol mandate could help families who are struggling to pay their heightened grocery bills. Under the mandate, nearly 40 percent of this year’s corn crop will be used for fuel instead of food.

3 Responses to “August 16, 2012: Drought, Food Prices, and Ethanol”

  1. Marc Rauch says:

    Ending the “federal government’s ethanol mandate” doesn’t help struggling families pay their grocery bills?

    Without the “mandate” farmers would not grow as much corn as they do, so it’s not like there would suddenly be an overwhelming surplus of corn. In addition, the vast majority of the corn that’s grown is used for animal feed, not human consumption. Furthermore, when you consider that a $4 retail box of corn flakes has less than 10 cents worth of corn in it, even a 50% reduction of corn prices (with or without a greater surplus of corn) wouldn’t have any significant effect on the box of corn flakes. The rising price of gasoline and diesel to the shipping industry is typically the cause of rising food prices, not ethanol use.

    And finally, even with this poor rain season this year, there is about an 85 million bushel surplus of corn…enough to last through all of next year.

    Brian McGraw is a great example of someone who wastes the time of our higher educational institutions to earn a degree that he then squanders by publishing and broadcasting drivel. Somewhere and somehow along the way he probably sold out any allegiance to our country in exchange for a pay day from the oil industry.

Trackbacks/Pingbacks

  1. [...] Ryan Young on August 16, 2012 · 0 commentsin Agriculture, Energy, Ethanol, Podcast Tweet Have a listen here.Severe drought in the Midwest has driven corn prices to record levels. Policy Analyst Brian McGraw [...]


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