Earlier in 2008, prior to the severe economic woes of the past
couple of months, the food vs. fuel debate was one of the hot
political issues heading into the 2008 election. In recent
weeks, those issues have again surfaced at the national level.
Some major organizations, members of the national news media and
a few members of Congress have blamed the rapid expansion of
ethanol production in the U.S. as the primary cause of
significant increases in food costs, food shortages in third
world countries and many other problems around the world. These
claims were based on the fact that the price of corn doubled in
two years to $6-7/bu. in July, and that there could be potential
shortages of corn. Some were calling for the U.S. to relax
standards for utilization of renewable fuels, and to eliminate
all federal government support for the ethanol industry in the
U.S. None of these measures were implemented, the price of corn
is now under $3.50/bu., and there appears to be more than an
adequate supply of corn for usag