Unless you have been dead for the past 12 months, the price of foods keep going up. Corn has risen even more than anything else. Some people blame the ethanol subsidies and others blame other things. When things like this happens, we often see shock waves throughout the economy of the world. In this case, it is the Mexican drink Tequila. This from the USA Today:
“But behind the fence, the blue agave plants, the raw ingredient of Mexico’s famous tequila, are getting harder to spot. They are being replaced by row after row of leafy cornstalks.
That switch to abandon slow-growing agave plants to cash in on corn, beans and other food crops selling for record prices worldwide could limit the supply of tequila and drive up the cost of a shot or a margarita.”
So like many other farmers the high prices of corn and the higher demand for Ethanol have made people want to switch to corn. The Ethanol drive lately has been government grown. That is for another post but the idea is still the same. If the government raises the demand artificially for something and farmers switch to it, then we are using taxpayers money to raise prices on goods.
The rest of the article here.