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According to one Republican the ethanol program - a subsidized program paid for by US taxpayers - has contributed to the worldwide crunch of the food crisis. The production of ethanol impacts the credit crisis by driving up feed costs to farmers which in turn gets passed on to the consumers. The catch-22 of the ethanol project is that the rise in gasoline costs has been the driving force behind the search for alternative fuels. Even while the price of corn goes higher the only significant way to make an impact in gas prices is utilizing corn-based ethanol. However the unintended consequence of using corn for fuel was the increase in the cost of food felt globally. The increase in this commodity has led to rioting in parts of Africa, India, Asia and other countries where the combination of poor weather and counterfeit money are also contributors. Yet the response from farmers, in the United States, to ethanol incentives has yielded the largest planting of corn crops in 60 years. Therefore, because of this rise in corn planting the acreage for other agricultural staples have been minimized. Thus creating a higher cost in feed for livestock ranchers which are reflective in higher prices for items such as beef, pork and chicken. Not only has the price for meat products taken a leap but other groceries such as breads, eggs, cereal and milk have also seen a rise in cost. Eggs alone have jumped in price by 40 percent and flour has risen by 50 percent this year alone. While the use of blended gasoline does have its benefits for vehicles that use a fuel mix alternative, the production of ethanol has contributed to the impact the credit crisis has on a global wide market. |
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