There is no mistaking the trend for more corn consumption. My prediction for higher corn prices last month wasn't a hard call. We're not about to give up our cars and we won't soon tap any new sources for oil. We're increasingly turning to alternative fuels like ethanol; and that means we'll need more corn.

Ethanol is made from corn. Putting more corn into ethanol production means less corn to go around for everything else we make from corn. It's simple supply and demand. When demand for a resource goes up it puts a strain on supply. Competition for scarce resources drives up the price for that resource.

Ethanol is transforming the corn market and boosting crop prices across the board, USDA said in its first projections of this year's crops and usage. It forecast a record average farm-gate price of $3.40 a bushel for corn - 16 cents above the mark set in 1995/96, the last time U.S. supplies ran low.

"For the first time, ethanol use is projected above exports," said USDA, and less corn will be used as livestock feed. Exports would fall by 10 percent from this year's levels, to 1.975 billion bushels, because of high prices, and feed use by 3 percent.

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So get ready to pay more to eat. And not just more for corn products, but for everything that gets corn for feed.