Uh, Oh.Looks like the Renewable Fuels Associations bribes (er, uh,
contributions . . . ) to our lawmakers wasn't large enough this year.
The RFS didn't raise the price of corn at all. What raised the price of
corn was the removal of the corn subsidies in 2011 that had been on the grain
for decades, because farmers couldn't make enough money to survive off of
the bushel price. It's the free market and a severe drought that raised
corn prices last year. Besides, the World Bank just releeased a study in which
they said the high cost of crude oil is to blame for the majority of any
increases in food prices, not the cost of the commodities, like rice or corn.It's interesting to note that VST isn't aware that one of the
biproducts of ethanol production is a nutrient-dense animal feed called Dried
Distillers Grains that most ranchers in the midwest feed to their livestock in
place of corn for its nutritional value. In terms of corn, 99% of the corn
raised in the U.S. is field corn, which is fed to animals and used for other
commercial purposes. When next year's corn prices go way down, this
argument will be moot.