Food vs. Fuel

• Critics have cited the growth in corn demand for ethanol production as the culprit for higher food prices. In reality, oil prices are more responsible for rising consumer food prices than the price of corn.

• About 80 cents of every retail dollar spent on food goes to cover processing, packaging, distribution and marketing costs. These factors, more so than ethanol, contribute to the rising cost of food.

• Food prices are largely determined by costs and profits after commodities leave the farm. On average, only about 19 percent of the price of food can be attributed to ingredients.

• According to the United States Department of Agriculture, farmers grow enough corn to actually increase the number of bushels of corn available for food and feed. The concern about whether there will be enough corn to meet feed, food and fuel needs is unfounded.

• Researchers at the Center for Agricultural and Rural Development have estimated that across all foods consumed, 30 percent higher corn prices would increase all average food prices by just 1.1 percent.

• Corn prices are not to blame for high milk prices at the grocery store. International demand for dairy products has outstripped international supply. Moreover, the world demand for dairy products has put U.S. products onto world markets, thereby raising prices.

• Agriculture is playing a large role in the supply of U.S. fuel. That will help offset any increase in food prices with lower fuel costs and cleaner, less-polluting renewable fuels.

• The Bureau of Labor Statistics has found that there is little to no connection between corn prices and rising costs of food. Corn and ethanol are just the scapegoats. Higher energy prices, particularly for petroleum products, are responsible for much of the rise in the Consumer Price Index.