Effects of ethanol on Texas food and feed

Texas A&M's Agricultural and Food Policy Center analyzed the effect of ethanol on Texas food and feed in April 2008. The report found that "the underlying force driving changes in the agricultural industry ... is overall higher energy costs, evidenced by $100 per barrel oil." Oil prices have gone from $35 per barrel in 2005 to over $100 per barrel in 2008. Other findings include:

• Rising energy costs has led to higher costs of production for corn producers, resulting in fewer corn acres planted.
  
• Food items like bread, eggs, and milk have higher prices unrelated to ethanol or corn prices, but are a result of higher world demands.
• The livestock industry has borne the cost of higher corn prices for feed and have yet to be able to pass those costs on due to the structure of the industry.

The full report can be found here.