World Bank: Blame ethanol policy for expensive food
Who you gonna believe? The Renewable Fuels Association, which is bought and paid for by the ethanol industry?
Numerous statistical analyses have demonstrated that the price of oil - not corn prices or ethanol production - has the greatest impact on consumer food prices because is integral to virtually every phase of food production, from processing to packaging to transportation.
The combination of higher energy prices and related increases in fertilizer prices and transport costs, and dollar weakness caused food prices to rise by about 35-40 percentage points from January 2002 until June 2008. These factors explain 25-30 percent of the total price increase, and most of the remaining 70-75 percent increase in food commodities prices was due to biofuels and the related consequences of low grain stocks, large land use shifts, speculative activity and export bans.