Drivers might save a few cents a gallon filling their tanks with ethanol, but they could soon be paying more for a burger and a milkshake as a result.
Demand for corn needed to make ethanol is soaring, and so are the prices, which have more than doubled within the past year.
That's bad news for beef and dairy producers, who also depend on the grain to feed their herds. Many say that cost will eventually be passed on to consumers and will likely mean higher grocery bills later this year.
Cattle feeders and producers aren't the only ones complaining about higher corn prices. Dairy farmers also are feeling the pinch.
"As more acres go into corn, it takes out other forages," Canton dairy farmer Scott Ortiz said.
U.S. farmers who once grew forage crops like alfalfa, milo or grain sorghum are switching to corn. That means fewer forage crops to feed dairy cows, said John Cowan, executive director of the Texas Association of Dairymen.
Milk prices are expected to continue to climb because of higher transportation costs and the increased corn demand.
J. Richard Fleming, the USDA's dairy market administrator in Dallas, said higher corn prices affect dairy farms in other ways, too.
"As the price of feed goes up, the higher cost of production has a tendency to decrease production of the farm," he said.
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