An independent analysis done by Informa Economics released this week looked at the impact of ethanol on food prices. Renewable Fuel Association Senior Vice President Geoff Cooper says the report shows higher corn prices have little or no effect on food prices.
Cooper says the Informa report comes out as USDA reports overall grocery prices roughly 2 percent lower than at this time last year while the amount of corn used for fuel ethanol is primed to set a new record in 2016, up 3 percent from last year. He says the other key finding of the Informa report shows crude oil driving up food prices.
Cooper says the Informa statistics totally dispel the food versus fuel argument.
The Informa analysis shows the increase in the food or consumer price index decelerated as the usage of corn in ethanol production increased dramatically.
