One of the side effects of the rapid increase in ethanol consumption in the U.S. is that corn -- the main feedstock for ethanol -- has gotten much more expensive. Just take a look at the futures markets: the July 2007 corn contract started climbing last fall, which was about the time people started to realize just how quickly demand for corn-based ethanol was growing.
Obviously, rising costs trickle down to consumers in all sorts of ways. If corn prices stay high, meat, poultry, and dairy products will all get more expensive, since the animals are fed lots of corn. But more directly, stuff that's made from corn -- such as the corn flour, corn sweeteners, and corn oils that are used in all sorts of processed foods -- will get pricier too. (Sorry, donut fiends.)
So wait, does this mean that there's an upside to the rapid rise in corn prices? If junk food gets more expensive, will we eat more healthfully?
Not likely.