Price of corn to rise, says University of Missouri

July 5, 2011 |

In Missouri, analysis by the University of Missouri suggests corn prices will increase approximately 18 cents per bushel if the 45-cent-per-gallon tax credit for ethanol remains. The credit is currently under debate in Congress.
The analysis supports an Iowa State University study conducted last year that showed corn prices would decrease by 10 percent if the 45-cent tax credit was eliminated.
Since last June, corn prices have doubled to more than $7 per bushel in part due to heavy demand from ethanol producers. However, much of the demand is created by the US Renewable Fuels Standard, not the tax credit.

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Category: Policy

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