Food stamps and child nutrition programs are expected to cost up to $900 million more this year because of increased ethanol use.Using food as fuel increases the costs of food, and actually requires more fuel because ethanol "enhanced" fuel doesn't get nearly as good gas mileage.
Higher use of the corn-based fuel additive accounted for about 10 percent to 15 percent of the rise in food prices between April 2007 and April 2008, according to the nonpartisan Congressional Budget Office. That could mean the government will have to spend more on food programs for the needy during the current budget year, which ends Sept. 30. It estimated the additional cost at up to $900 million.
The CBO said other factors, such as skyrocketing energy costs, have had an even greater effect than ethanol on food prices. CBO economists estimate that increased costs for food programs overall due to higher food prices will be about $5.3 billion this budget year.
Saturday, April 11, 2009
You Don't Say: Ethanol Programs Raise Food Costs
This comes as no surprise: