E15 is here

[mcjaredsandwich]

Originally Posted by 2ndamendment

There is the base for the problem. The government has over the years introduced the American farmer to subsidies(government Aid---tax payer money). Similar to welfare for the most part.
The corn that is being used for ethanol instead of food, is contributing to the rise in food prices for the American consumer.

A little bit, but not much. Subsidies keep the farmer in business. Without them, we would be paying much more in food cost. We only pay about 10% of our budget on food. Many countries that do not have govt subsidies for farmers pay over 30%, many close to 50%.

The govt buys the crop at a minimum price, assuring the farmer gets paid. If the crop sells for more than what the govt bought it for, the farmer pays back the govt and keeps the profit. If it sell for the same price, or lower than what the govt bought it for, the farmer hands over his entire crop to the govt.

The problem is that we export so much food. Europe and Asia love our grain. But, they also pay for it.

Sure, ethanol is from corn. But its also from sugarcane, and any other crop that can produce alcohol (rice, wheat, etc).