 merrie says: On the losing side of the equation have been cattle, hog and chicken producers, as well as consumers. The government’s latest projection, released Friday, is that food prices this year will rise as much as 5.5 percent. Some products, including cereals and eggs, are expected to rise about 10 percent. The idea of easing ethanol mandates, while it would also lower the price of corn, is contentious. Keith Collins, the former Agriculture Department chief economist, will release a study on Monday saying that as much as half of the sharp increase in corn prices over the last few years is due to the demands of ethanol production. “We’ve seen a tremendous range of unintended consequences” from the requirement that increasing amounts of ethanol be blended into gasoline. The White House will be forced to confront the ethanol issue next month. States are allowed to asked for waivers of the mandate for corn ethanol on the ground that it is harming the economy or the environment. In April, Gov. Rick Perry of Texas did just that, saying the “misguided” mandate was devastating the livestock industry in Texas. He asked for a large decrease in ethanol requirements to free up corn for use as animal feed. The comment period for the waiver ends on Monday; the E.P.A. administrator has until July 24 to make a decision. Keith B. Hennessey, Mr. Bush’s chief economics adviser, said in an interview last week, “We have pushed renewable fuels to the point where we are getting counter-pressure saying we are going too far”. Last month, the Agriculture Department took the unprecedented step of saying that some conservation land could be used for hay and grazing after the nesting ... Earlier this year Dems tried to pass a bill that would pay farmers to keep land out of production for conservation purposes. The catch, they could never develope the land or sell it EXCEPT, to the government. By by private property. |
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