Monday, April 13, 2009

Report: Ethanol Raises Cost of Nutrition Programs

Food stamps and child nutrition programs are expected to cost up to $900 million more this year because of increased ethanol use. 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. Roughly one-quarter of corn grown in the United States is now used to produce ethanol and overall consumption of ethanol in the country hit a record high last year, exceeding 9 billion gallons, according to the CBO. It took nearly 3 billion bushels of corn to produce ethanol in the United States last year -- an increase of almost a billion bushels over 2007...AP

But the greenies lobbied for it and the first Presidential primary is in Iowa.

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