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Iowa State Economist Says RFS Has Little Effect On Food Prices

Iowa State Economist Says RFS Has Little Effect On Food Prices

Photo: WNAX


The Iowa Renewable Fuels Association is urging the American Petroleum Institute to stop misleading consumers on the federal renewable fuel standard. IRFA says API recently launched a telemarketing campaign in Iowa claiming the RFS increases food prices. Iowa State University Economist Bruce Babcock says that isn’t completely true.

Babcock says as a whole, the RFS is working and has been good federal policy.

Babcock says maintaining the RFS at intended levels for 2014 would have essentially no impact on food prices.

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