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Corn prices are down, food prices are up

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One of the main talking points of the anti-ethanol crowd centers on the myth that using corn for ethanol drives up corn prices and makes our food more expensive.

A recent story in the Wall St. Journal noted that federal forecasters estimate retail food prices will rise as much as 3.5 percent this year. Those prices are going up despite the fact that we’re continuing to produce a lot of ethanol, and corn prices have fallen by about $4 per bushel in the last 16 months.

“The inflation comes despite sharp decreases over the past year in the prices of grains, including corn, after a big U.S. harvest,” the WSJ story said.

The story went on to cite several factors that are contributing to the increase, including drought, tight cattle supplies and rising milk demand in growing Asian countries.

Not surprisingly, the anti-ethanol crowd is silent on the matter.

We all want our food to remain affordable, nutritious and accessible for everyone. Blaming ethanol for driving up food prices has always been a myth, and recent evidence once again shows just how misguided of a myth it is.

Corn gives us food, fiberĀ andĀ fuel. We don’t need to choose one over the other.

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