Sunday, April 27, 2008

Foods to Biofuels

By Brigid Beatty and Michael Aubele
VALLEY NEWS DISPATCH
Sunday, April 27, 2008
Corn and other food prices will continue to climb, experts say, although why is a matter of debate.

James W. Dunn, a Penn State University agriculture professor, said increased ethanol production is a primary factor. The United States, he said, "has diverted a huge amount of corn crops and acreage into ethanol production."

A few years ago, Dunn said, 1 billion bushels of corn were used to make the biofuel. This year, he said, the amount of corn used in production is expected to range from three billion to five billion bushels, which means less corn for the nation's food supply.

Ethanol, derived from field corn, has seen the biggest price increase. O'Neill said the price of field corn is hovering at about $6 per bushel, whereas two years ago, it sold for about $2 per bushel.

The high prices are having an effect on others, such as dairy farmers, who have to buy field corn to feed their livestock.

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