US ethanol subsidy caused corn price surge: study

Posted by Washington Post: Juliet Eilperin on June 22nd, 2011
Agence France-Presse: US ethanol subsidies pushed up corn prices as much as 17 percent in 2011, according to a study released Wednesday at a time when Washington's policies on biofuels are coming under heightened scrutiny. The study by Bruce Babcock of Iowa State University and released by the Geneva-based International Centre for Trade and Sustainable Development, suggests that high gasoline prices this year may have intensified demand for ethanol, creating a tighter market for maize than in previous years. "Under......

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