Recent news stories about higher food prices often try to make a connection between food prices and the demand for ethanol, an incorrect assumption on the part of the ethanol opponents that significantly downplays all the impacts and pressures that affect food prices. Studies after the 2008 spike in corn prices help demonstrate this, according to the National Corn Growers Association.
“It’s an outrage to hear the same claims time after time, blaming corn growers and ethanol producers for the rise in food prices,” said Bart Schott, NCGA president. “It’s a rhetoric with no grounding in reality. Our growers are not only producing more corn and meeting all needs, but we are also experiencing some of the same negative factors on their farms, such as higher energy costs, that are driving up food prices around the world.”
Here in the United States, the Congressional Budget Office had already looked into the issue and issued a report in April 2009 that discussed the role of factors such as energy:
“CBO estimates that from April 2007 to April 2008, the rise in the price of corn resulting from expanded production of ethanol contributed between 0.5 and 0.8 percentage points of the 5.1% increase in food prices measured by the consumer price index (CPI).… Continue readingRead More »