Many farmers and ranchers look at corn prices above $3 per bushel, the highest in a decade, and see higher costs to feed their cows, chickens, and pigs. This squeezes their profit margins. For example, with a 40% increase in the cost of feeding chickens, Tyson Foods saw a $117 million profit in 2005 turn into a $235 million loss in 2006. Using corn for ethanol raises the price of milk, beef, chicken, eggs, and pork, but not as much as it squeezes supplier margins, since many factors go into retail prices. Ranchers are questioning the wisdom of ethanol subsidies.
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