Ethanol could cost government $900 million on nutrition programs

[RobJohnson]

WASHINGTON - Food stamps and child nutrition programs are expected to cost up to $900 million more this year because of increased ethanol use.

Higher use of the corn-based fuel additive accounted for about 10 percent to 15 percent of the rise in food prices between April 2007 and April 2008, according to the nonpartisan Congressional Budget Office. That could mean the government will have to spend more on food programs for the needy during the current budget year, which ends Sept. 30. It estimated the additional cost at up to $900 million.


http://malaysia.news.yahoo.com/ap/20090410/twl-food-costs-ethanol-1be00ca.html

[thundley4]

IIRC, ethanol blended fuels are also subsidized so they are cheaper that non blended gas.  So , we'll be taking a hit on taxes from both directions.