New Study Indicts Ethanol for Rising Costs

Thursday, November 29th, 2012 and is filed under Blog, Economy

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For a number of months, we’ve been working Republican offices hard in an attempt to force a vote on the repeal of the ethanol mandate.  The 2005 Renewable Fuels Mandate ostensibly forces Americans to purchase 15 billion gallons of biofules per year starting in 2015.  This has led to perhaps the biggest market distortion in American history, impelling farmers to plant 40% of the corn crop for an ineffective fuel instead of for cattle feed.

This week, PricewaterhouseCoopers published a new study detailing the inimical effects of the ethanol mandate.  Here is the punchline:

Higher corn costs impact the entire food chain, including bread, eggs and almost all dairy products;

·         The ethanol mandate will have caused a 27% increase in corn prices by the time it meets its 2015 goals;

·         The mandate costs a typical chain restaurant up to $18,000 per year, per restaurant location; and

·         The mandate is estimated to increase total costs for chain restaurants by $3.2 billion — money that could otherwise go to building new restaurants, expanding operations or hiring new workers at a time when our country is still recovering economically.

Yet, despite the fact that there is a shortage of corn as a result of the drought, Obama and his cronies have denied the request of Democrat and Republican senators to suspend the RFS.

This is the same man who has overseen the largest expansion of the food stamp rolls.  Anyone want to connect the dots?