(June 24, 2007)--Some farmers say that saving a few cents at the pump with ethanol might cost you extra pennies for milk and meat at the grocery store.

Demand for corn needed to make ethanol is soaring and so are the prices.

That means it takes more money to feed and raise cows, a cost many say will eventually be passed on to consumers.

Texas is the nation's leading cattle producer.

Cattle raisers are keeping their animals on pasture longer rather than taking them to feed yards.

Some mother cows were sold off during recent droughts, which adds up to fewer calves in the market.

Falling supply of cattle and rising demand for corn create what feed yard manager Kyle Williams calls a "double whammy."

Jim Gill with the Amarillo-based Texas Cattle Feeders Association says ranchers are now losing as much as $100 per head because of high corn prices.

Demand also motivates farmers to plant more acres of corn and fewer acres of forage crops like alfalfa or milo.

Forage crops are used to feed dairy crows.

Experts say that with decreased supply in these crops, the price of milk will continue to climb.

Click Here For Texas Association of Dairymen Web Site

Click Here For Texas Cattle Feeders Association Web Site

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