Op-Ed Commentaries
April 20, 2008
David A. Ridenour
The price of bread and milk: Is ethanol to blame? Yes

WASHINGTON - Move over "Bridge to Nowhere," there's a new poster child of congressional waste and avarice - ethanol, the "Fuel to Nowhere." Ethanol leads only to higher food prices and greater greenhouse gas emissions.

Anytime Congress can find an excuse for shoveling out billions of dollars in pork, it's a safe bet there'll be a stampede of Democrats and Republicans to vote "Aye." Such has been the case with ethanol ever since Congress latched onto the idea that it could be sold as a means of cutting greenhouse gas emissions.

Congress has already authorized billions in taxpayer-funded subsidies for farmers who grow corn and the producers who turn it into the fuel that's pumped into your car.

Never mind that ethanol is helping spike food prices. Corn prices have already increased by 70 percent since 2005 and the U.S. Department of Agriculture projects they will rise an additional 10 percent to 20 percent this year.

But that's not the half of it. Corn-dependent livestock are also increasing in price. The USDA estimates that corn feed price increases added nearly 9 percent to the price of beef last year. But this doesn't include the indirect costs. U.S. beef cattle herds declined by 338,000 in 2007, increasing beef prices further, in part, due to higher prices for feed, according to the American Farm Bureau Federation.

Ethanol advocates claim that rising corn costs have contributed only modestly to the overall increase in food prices. They're not being entirely honest, as they're only counting the direct costs of ethanol. They don't count, for example, increases in soybean prices resulting from farmers switching to the more lucrative corn crop. Soybean crops dropped by 11 million acres last year - much of it used to produce corn.

The corn growers and Big Ag, flush with new-found cash, have generously increased their campaign contributions, making everyone happy - everyone, that is, but consumers and taxpayers.

Taxpayers are shelling out billions of dollars while getting nothing in return, making ethanol truly a fuel to nowhere.

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