Is Ethanol to Blame for High Food Prices?
As the chairman of the Kankakee Regional Chamber of Commerce Legislative Committee, I have the opportunity to discuss important agriculture issues as a part of the other important legislative issues affecting Kankakee County business. In order for those not familiar with agriculture to gain a better understanding, these topics are discussed in depth and good questions are often raised. A question recently posed was in regards to our food prices: Is ethanol to blame for our rising food costs? Blaming ethanol use for food inflation is wrong for the following three reasons. Much of this years food inflation did not come from ethanol because most grocery prices are unaffected by corn prices, but they are affected by transportation, electricity, labor, marketing, and other costs. The price of meat in the grocery store is not determined simply by adding feed costs to an animal. Farmers are price takers, not price makers. Higher feed costs may simply stop at the farm gate. In food products th
