Ethanol is responsible for less than one percent of food price increases in the United States, a U.S. government study has found.
It’s a finding that U.S. farm groups say exonerates farmers and ethanol producers from the charge that they are the main reason why consumers pay more for food.
But don’t expect the food versus fuel debate to disappear soon, says a prairie organization promoting biofuel.
“I’m sure as soon as fuel prices rise again, it’ll become an issue,” said Wayne Thompson, executive director of the Saskatchewan Canola Growers Association.
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“You’re turning food crops into fuel, so you’re going to see that link, no matter what.”
The U.S. Congressional Budget Office study, released April 16, found that ethanol manufacturing was responsible for part of the rise in food prices between April 2007 and April 2008, but only by 0.5 to 0.8 percent. The rest of the year-on-year increase of 5.1 percent was due to factors such as higher energy costs, which it said “had a greater effect on food prices than did the use of ethanol as a motor fuel.”
The American Farm Bureau was quick to say that the study showed farmers weren’t mainly responsible for the increase in U.S. food prices.
“These results of the CBO report came as no surprise to the Farm Bureau,” said bureau president Bob Stallman. “With so many fingers in the till between the farmer and consumer, there are numerous factors responsible for higher food prices, including labour expenses, energy costs, financial speculation, increased demand, weather production losses and the weak U.S. dollar.”
