Corn prices spiked from around $2.50 a bushel to more than $4 a bushel earlier this year in response to a surge in ethanol production. Prices have dropped in recent weeks, with corn for September delivery at $3.12 per bushel Tuesday. Higher corn prices mean higher feed costs for cattle, hog and chicken producers. Some ranchers are having a harder time securing grazing land, or are paying higher rents, as farmers convert acres to corn. The result: one of the bigger shoot-'em-ups between growers and ranchers since the 1800s, when farmers fenced in the open range. Rather than firearms, the weapons of choice this time are lobbyists and dueling economic studies. (USA Today, Wednesday)
Unintended consequence — or is it?
FEE Timely Classic
Ethanolics Anonymous by Lawrence W. Reed