The U.S. is the largest exporter of corn in the world, but the latest USDA estimates are that we will be exporting 300 million fewer bushels due to tight supply and higher prices. What is the hidden ingredient in rising corn prices?
For whatever reasons, Congress was able to resist the pressures of the farm lobby to extend the ethanol subsidy. Now it's time for Congress to show the same intelligence and courage and end subsidies for a host of industries.
While corn growers and ethanol producers may find themselves enjoying stock increases that are likely to continue, investors should carefully consider the implications of their support of such a company.