Growing demand for corn will spike food prices, economic expert says
Read more: Business, Community, Ethanol, Corn, Food Prices
Corn surrounds this Iowa ethanol plant. But a former Clinton economic advisor says ethanol demand for the crop will lead to a sharp rise in food prices in the future.
/ Courtesy of AP GraphicsBank
LINCOLN, Neb. (AP) - Increased production of biofuels such as ethanol may help farmers' bottom lines and address climate-change concerns. But it also could cause a sharp spike in food prices worldwide.
That was the message a former senior economist for President Clinton delivered today at the University of Nebraska-Lincoln's fourth annual Water Law, Policy and Science Conference.
David Sunding served on Clinton's Council of Economic Advisers. He said people are going to have to come to grips with higher food costs because of rising energy prices and ethanol production that increases demand for corn and other commodities.
Sunding predicted that politicians may eventually be forced to consider more government programs to make food affordable.
