NeFB: Corn Not the Cause of Food Price Increase

In a news release issued Friday June 6, 2007 by the Nebraska Farm Bureau, its president lays out his views on the food and fuel discussion. A few key points are clipped here but you can read the entire essay on the NeFB site.

July 06, 2007
Keith Olsen Commentary: Corn Not the Cause of Food Price Increase
By Keith Olsen, President, Nebraska Farm Bureau Federation

• "It is becoming more popular all the time to pin food price increases on higher corn prices."
• "media reports often quote misleading numbers indicating that corn prices are in the neighborhood of $4 a bushel. In reality, corn prices are only around $3.15 at local elevators, and they are expected to be around that level for the 2007 crop."
• "If reporters would take time to dig into the numbers and the facts, they would find that other factors are the real cause of higher food prices." "Food prices in general do not rise as much as the media portray."
• "The “rest of the story” that is not being told is that energy prices are a far larger culprit in higher food prices. "
• "The bottom line is that the corn-food price link is grossly overstated."
• "nearly all the evidence points to other factors. The reality is that higher corn prices have had very little impact on food prices."

Nebraska is not the only Farm Bureau to discuss food costs. Check out the Wisconsin Farm Bureau message.


Source: Nebraska Farm Bureau


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