By Andy May
This post is a follow up to my previous post on biofuels, here we discuss the impact of biofuels on food prices in more detail. Ethanol has been produced in large quantities in the United States for fuel since 1978. That was the year the Congress passed the Energy Tax Act (Tyner 2008) which provided for a 40 cent per ethanol gallon exemption to the gasoline excise tax. This tax exemption for ethanol was increased to fifty cents in 1982.