An Analysis of the Impacts of CornBased Ethanol Production on the United States’ Corn Price

The growing corn-based ethanol production industry has laid towering challenges for the various stakeholders in the fuel industry and food production and pricing regulation bodies. The crux of the matter lies in the resonating concern that the growing production of corn-based ethanol is contributing significantly to the soaring food prices. There has been particular concern about the negative impact of corn-based ethanol production on the price of corn. The impact of ethanol production has gone beyond the food prices (corn) influence threshold to the entirety of the agriculture sector. From a macro perspective, the impact has rippled beyond the precincts of the US into global fuel and food production and distribution realms.The major aim of this study is to explore through quantitative research methodologies, the calculable impact of corn-based ethanol production on the price of corn in the US. It is perceived that the import of the study, through the integration of both quantitative and qualitative evaluations will assist invaluably in the illuminations of the dynamics and dimensions that constitute the soaring food prices bubble, in the US and the world over.The purpose of the study is to unearth and illuminate the existent relationship between the increased demand for corn and the farm product’s prices. More precisely the study is aimed at illustrating the dynamics that constitute the trends on the price of corn determined by the escalating demand of corn fueled by the production of corn-based ethanol.The study is conducted in the theoretical premise of macroeconomics among other sub-theoretical domains of significant proximity to the objectives and focus the concept of this study. The premise provides the theoretical components that illuminate an understanding of how economic and macroeconomic policies and factors affect fuel, food production, and distribution dynamics.