Farm Compliance

Washington, DC - National Corn Growers Association (NCGA) President Bob Dickey released the following statement on the Congressional Budget Office’s April 8 report, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions:”

“The Congressional Budget Office’s (CBO) report reaffirms that ethanol has minimal impact on increased food prices. According to the CBO report, corn ethanol contributes less than one percent, just ‘0.5-0.8 percentage points of the 5.1 percent increase in food prices’ from April 2007 to April 2008. The report also concludes that higher energy costs, including the price of oil and gas, have a greater impact on food prices.

“It is important to note the report states ‘increases in the supply of corn from cultivating more cropland, increasing crop yields, or improving the technology for making ethanol from corn…would tend to lower food prices…and that ethanol’s effect on future food price inflation is uncertain…’ In addition, the report indicates the positive contribution of ethanol in reducing greenhouse gas emissions of the transportation sector.

“This report is just the next chapter in a growing narrative showing corn ethanol is not principally responsible for higher food prices despite what critics have led consumers to believe. In fact, 85 to 90 percent of the increase in food prices last year was due to higher energy costs and other factors.

“America’s corn farmers will continue to produce enough corn to meet the growing demands of fuel, food and feed in an economical and environmentally responsible manner. Corn ethanol aides the U.S. in energy security and an improved environment, and homegrown fuel production will continue to bring job opportunities to rural America.”

The report is available for download at the Congressional Budget Office Web site, http://www.cbo.gov