Another Study Debunks Food vs. Fuel Myth

It is an argument that comes up every Thanksgiving season: using corn for ethanol drives up food prices. Another study proves this is simply not true. Year after year, study after study continues to show that the renewable fuels sector does not impact the price or availability of food.  Again this year, an independent analysis shows  food prices are not impacted by commodity prices.  Jeff Cooper, vice president of the Renewable Fuels Association, says it is really hard to notice any impact on consumer food prices from the expansion of the ethanol sector.  The study, done by Informa Economics, indicates that food prices were not impacted by the prices of corn or soybeans. “In fact, the  inflation rate for grocers is about half of what it was before the RFS started in 2010,” said Cooper. Prior to 2010, grocery prices were averaging a yearly increase of 3.2%; since 2010 that has dropped to 1.8%.