A study released recently by Texas A&M’s Agricultural and Food
Policy Center illustrates corn prices have had little to do with
rising food costs, the National Corn Growers Association (NCGA)
notes. The report, “The Effects of Ethanol on Texas Food and
Fuel” also determined that relaxing the renewable fuels standard
(RFS) would not result in lower corn prices for livestock and
poultry feeders. The study shows that prices of household
groceries, such as bread, eggs and milk are unrelated to ethanol
or corn prices. The study points to higher oil prices as the
underlying force impacting consumer prices and agriculture. The
report was issued in response to mounting questions about the
impact of increased ethanol production on the Texas agriculture
sector and overall economy. NCGA President Ron Litterer said,
“The Texas A&M study dispels the food vs. fuel debate. This
study shows there are many forces creating increases in food
costs and ethanol is not a major factor. Clearly, corn is
meeting the demands for biofu