A 2007 farm bill with generous support could run into problems, according to a New York Times article today. But despite possible budget problems, lawmakers and policymakers are anxious to provide generous subsidies for alternative energy sources from crops, such as corn and switchgrass.
Already, though, there’s some evidence that the proliferation of ethanol plants turning corn into fuel is causing the price of feed to rise significantly. That also translates into higher food prices for consumers. In a CEI monograph published last fall, Dennis Avery predicted that a food or fuel problem was likely, especially with government support for energy programs for alternative fuels.