Turning corn into fuel could push price to $4.50 a gallon

The Detroit Free Press reports:

Get ready to pay $4.50 a gallon this summer -- for milk.

Gasoline prices over $3 a gallon have grabbed consumers' attention, but dairy products and other corn-dependent foods are expected to rise at an even faster rate.


This is happening because of an explosion in the production of ethanol, a gasoline additive touted by the president, automakers and farmers as a way to reduce America's dependence on foreign oil.

Up to 20% of the nation's corn crop -- 18% in Michigan -- is now being channeled to ethanol production. That increased demand means the price of corn used to feed cattle and pigs and to make cereals and sweeteners is going up -- 61% between September and May.

Together with the rising costs of wheat and other commodities, corn demand is pushing overall food prices up 4% this year, compared with 2% a year ago, and driving up the costs of breakfast foods -- eggs, bacon, cereal, milk and potatoes -- as much as 10%, according to the U.S. Bureau of Labor Statistics.

I guess some politicians really want higher prices.