States are requiring that producers of gasoline include “biofuels” in their product mix—fuels like ethanol, made from corn or other food crops. A new report from North Carolina’s John Locke Foundation says those rules are costing consumers by raising food prices. And it calls out the states that demand the most biofuels (one of them is North Carolina). Writes Michael Bruce:
“The market distortions from these mandates and incentives artificially constrain food supplies by reallocating edible crops—especially such staples as corn, wheat, and soybeans — to power civilian and government vehicles. Nearly half of the soybeans (46 percent) and corn (45 percent) produced in the United States are used for biofuels.”
The study grades all the states on the extent of their interference to encourage biofuels. Ohio and Utah come off best. North Carolina receives a D- grade for its eleven separate rules that pressure companies to use biofuels.