Are new rules mandated by the federal government to increase biofuels production causing food prices to rise?
U.S. biodiesel has a very small impact on food costs. In the past year, food prices have risen 5.1 percent. Only an estimated 0.2 – 0.6 percent of that total increase has been contributed to biofuels (biodiesel, ethanol, Cellulosic ethanol) production, according to the U.S. Department of Agriculture (USDA). The leading factor to higher food costs is the rising cost of crude oil, which over a four-year period, more than tripled from $40 a barrel to nearly $150 in July of 2008. Food often travels through multiple states, making it highly susceptible to fuel costs.
