From an op-ed in the New York Times last weekend:
“Almost since Iowa — our biggest corn-producing state — grabbed the lead position in the presidential sweepstakes four decades ago, support for the biofuel has been nearly a prerequisite for politicians seeking the presidency.
Those hopefuls have seen no need for a foolish consistency. John McCain and John Kerry were against ethanol subsidies, then as candidates were for them. Having lost the presidency, Mr. McCain is now against them again. Al Gore was for ethanol before he was against it. This time, one hopeful is experimenting with counter-programming: as governor of corn-producing Minnesota, Tim Pawlenty pushed for subsidies before he embraced a ‘straight talk’ strategy.”
I am glad to see someone address the growing political economy problem posed by farm subsidies, but the op-ed is interesting throughout, especially in the way it explains clearly how ethanol subsidies are likely to have played an important role in increasing food prices.
For those who are interested in learning more about the impact of biofuels on food prices, Patrick Westhoff’s The Economics of Food is an excellent read.
(HT: Julie Cantoro.)