Corn: Subsidies Slide, Mandates Maintain

Some may have heard the recent news that federal subsidies for ethanol production were not renewed at the end of 2011. In what sounds like a win for taxpayers and those who are anti-ethanol, note that the Renewable Fuel Standard (see: EPA and Bioenergy Wiki) still requires by law that a growing percentage of corn grown in the US be allocated for ethanol production. This strong enforcement guarantees buyers for corn and, thus, keeps the price of corn at a steady, high place.