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When corn prices plunge, food prices don't follow

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A new study shows that when corn prices go down, food prices don’t follow.

Remember when high corn prices and ethanol were blamed for rising food prices during the drought of 2008?

Big Oil and the anti-ethanol zealots were out in full force, pushing the food vs. fuel myth and questioning why we use corn to make ethanol instead of food.

Today, corn prices have come down 50 percent from their peak. However, food prices haven’t budged. In fact, according to a new study from the Renewable Fuels Association (RFA), retail food prices of dairy, pork, poultry, eggs and beef have actually increased in some cases.

Strangely, the food vs. fuel crowd is silent.

RFA’s report confirmed what objective observers have been saying all along about food prices: They’re influenced by energy costs and other factors like processing and transportation, not ethanol.

The RFA report is yet another nail in the coffin of the misguided food vs. fuel argument. Unfortunately, the argument probably isn’t dead yet.

Those spreading the misinformed message of food vs. fuel are well-funded and politically connected. Actual facts do not stop them from using that misinformation to advance their own selfish interests. They’ll keep at it as long as it fits into their anti-biofuels agenda.

All we can do is continue showing people the facts about ethanol and food prices (facts like this one: For every bushel of corn used to make ethanol, we get 2.8 gallons of fuel and 18 pounds of dried distillers grains, a high protein livestock feed).

The price of corn and using corn to make ethanol has little influence on what you pay at the grocery store.

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