Last March, oil was at $60 a barrel and corn was at $4 a bushel. Today, oil is at $102, and corn is at $5.25. So in the past 12 months, oil's price has increased 70% and corn's price has increased 31%.
The United States produced the following amount of corn:
2007 - 13,200,000,000 bushels
2006 - 10,500,000,000 bushels
2005 - 11,100,000,000 bushels
The United States produced the following amount of ethanol (in gallons):
2007 - 6,500,000,000 (est.)
2006 - 4,860,000,000
2005 - 3,900,000,000
Since a bushel of corn makes 2.7 gallons of ethanol, we can calculate that the ethanol industry used about the following amounts of corn:
2007 - 2,400,000,000
2006 - 1,800,000,000
2005 - 1,400,000,000
Finally, we subtract what the ethanol industry used from what American farmers produced to find out how much corn was available for food:
2007 - 10,800,000,000
2006 - 8,700,000,000
2005 - 9,700,000,000
So there you have it. Even after the ethanol industry takes its share, the American farmer is putting more corn on the kitchen table now that ever before. The only conclusion that you can reach is this: food prices are NOT going up because of a shortage of food corn (there is more food corn than ever). Rather, the price of food corn is going up because the price of oil has increased 70% in the last year, and farmers use a lot of fuel.


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