A quick follow-up on the E15 warranty post from earlier today. The nonpartisan Congressional Budget Office has found that increased ethanol use in 2007 and 2008 led to a rise in food prices of about 10-15 percent (FIXING OUR MISTAKES UPDATE: this sentence should end: "of the 5.1 percent increase in food prices" - see explanations in the comments below). Looking forward, the CBO said that the federal government will have to spend up to $900 million more on nutrition assistance programs like food stamps and school lunches in the current budget year. Overall, the cost for these programs will increase by $5.3 billion, with higher energy prices driving most of that amount. While automakers are worried about the potential E15 increase because of warranty issues, the AP is reporting that groups like the Grocery Manufacturers Association, American Meat Institute, National Turkey Federation and National Council of Chain Restaurants are coming together to oppose government support for ethanol. Can anyone even draw all the ethanol lines in the sand anymore?
[Source: AP]
Photo by clementine gallot. Licensed under Creative Commons license 2.0.


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