Most of corn crop to be used for fuel

Washington: More of the US corn crop will be used to fuel cars than feed animals for the first time during the marketing year that starts in September, the Agriculture Department projects.

The proportion of the harvest going to ethanol has almost quadrupled since 2002. The share will reach 40% in the current marketing year and be close to that level in 2011-2012.

The rise in ethanol’s corn consumption has been accompanied by higher prices for the grain. The average price paid to corn farmers is projected to exceed $6 a bushel for 2011-2012, the marketing year that begins in September, up from $2.32 in 2002-2003.