Climate change, biofuels mandate
would cause corn price spikes
By Brian Wallheimer
April 26, 2012
A study from Purdue and Stanford university researchers predicts that future climate scenarios may cause significantly greater volatility in corn prices, which would be intensified by the federal biofuels mandate.
The findings, published this week in the journal Nature Climate Change, show that severely hot conditions in corn-growing regions and extreme climate events that are expected to impact supply would cause swings in corn prices. When coupled with federal mandates for biofuel production, the price volatility could increase by about 50 percent over the period from 2020-2040 as compared to recent history.