Farmers Seeing Rise in Corn Prices Due to New Demands for Ethanol

MAY 31, 2006 - Posted at 8:05 a.m. CST

ST. LOUIS, MO - Growing ethanol use is giving corn farmers something they haven't seen in years...rapidly rising corn prices.

The price for a bushel of corn has jumped 50 cents to $2.50 over the last six months.

Industry experts think the trend will continue over the next decade because last year's federal energy bill mandates alternative fuels be used nationwide.

While farmers are happy about the price jump, is isn't going to make a goldmine out of cornfields.  Corn prices have been falling steadily over the last decade, and experts say its unlikely prices will be as high as they were after the drought of 1995.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)