Corn prices ended last week at $4.05 a bushel at the Chicago Board of Trade. The price has doubled in the last year, largely because ethanol plants are increasing demand.
It's unclear if corn prices will moderate. On one hand, farmers are expected to shift more acreage to corn this year, which could bring prices down. On the other hand, Bush needs as much corn as possible flowing into ethanol, meaning government inducements to ethanol producers are likely to continue.
How would you like to be one of those people that has been burning corn for years only have this thrown in your lap... I read in the newspaper the other day there are hundreds of proposals to build more of these ethanol plants even one locally here.