Ethanol subsidy low compared to oil
The Free Press’ recent opinion on ethanol subsidies demonstrates how little they know about agriculture. Canned corn and corn on the cob prices will not increase due to ethanol demand for corn. Sweet corn is used for most human consumption while field corn is used for ethanol.
While corn demand from ethanol does increase food prices marginally, it mainly affects animal product prices through increased feed costs. However, corn available for animal feed when adjusted for ethanol byproducts has remained fairly stable over time. Foreign food demand and supply shocks and increased energy prices are the real drivers of increased food prices.
Ethanol, in fact, helps offset energy cost increases. The use of ethanol reduces gasoline prices by 18-20 cents per gallon even when accounting for reduced energy efficiency. That is for every gallon of gasoline. In addition, there are benefits to fuel security resulting from reduced reliance on imported oil.
Ethanol subsidies are cheap when compared to oil, which receives two and a half times the subsidies of ethanol, not including the billions spent from our defense budget to stabilize the Middle East. You may think these subsidies are unconstitutional, but no court has agreed with you.