Cramer and Texas Governor Rick Perry aren’t the only people crusading against U.S. ethanol mandates. Tyson Food CEO and President Richard Bond is just as opposed to using a huge portion of our food crop for fuel.
Speaking to Cramer via satellite during Wednesday’s Mad Money at the Half, Bond said he is “disappointed” the Environmental Protection Agency turned down Perry’s request that Washington reduce its federal biofuels mandate.
Bond estimated that over 1 million bushels from this year’s upcoming corn crop will go toward fuel, saying, “That’s just plain not right.”
Both corn and soybean prices played a big part in the unexpected increase in yesterday’s Producer Price Index, and they’ve accounted for $550 million in costs for Tyson . Bond expects that trend to continue into 2009.
“The consumer hasn’t really felt the effect” of these increasing costs, Bond said, because his company has so far been absorbing them.