Green Jersey

Corn prices reach a record high

Corn prices soared to a record $6 a bushel yesterday. The price went up because of an anticipated shortfall — U.S. farmers are expected to plant 86 million acres of corn this year, 8 percent less than they did in 2007. In 2007, the amount of corn planted was the highest since World War II, according to the Associated Press.

This will affect:

• Consumers. The price of meat (because of the livestock feed) and sweets from candy to soda (because of the corn syrup) will rise, as will the price of other products.

• Producers of corn-based ethanol. The price of corn is outpacing the price of ethanol, which made more financial sense to its makers when corn cost $2 a bushel (2006).

The U.S. government subsidizes the production of ethanol. In an op-ed article in last week’s Trenton Times, Calvin Hoy says subsidies are a bad idea and outlines the ways in which this situation affects other countries. Also critical, yesterday, was the Star-Ledger’s Paul Mulshine. he U.S. government subsidizes the production of ethanol.