Colorado Corn Cultivating Opportunities

Acting U.S. Secretary of Agriculture Chuck Conner said last week that higher corn prices are only a small factor behind higher food prices.

In a speech to the Renewable Fuels Association, Conner said, “The data that has been presented to me shows that it (higher corn prices) has been assigned far more than its fair share of blame for what is happening in our grocery store aisles.”

Conner noted that droughts in Europe, Asia and Australia have reduced yields in those areas, while demand for milk and dairy products in Asia has increased. The rising cost of oil, he added, affects processing, packaging, distribution and marketing costs. “A much, much greater impact than higher grain prices as a result of ethanol,” he said.

Conner’s remarks bear out other food price studies, said National Corn Growers Association President Ron Litterer. “It’s good the secretary is talking about this,” he commented. “Numerous independent studies show there is only a slight link between what corn growers receive for their crops and what consumers pay for their food. We’ll have a record harvest this year, and there’s plenty of corn to meet the demand for both food and fuel.”

In his speech, Conner pointed out that the amount of corn being fed to livestock has actually increased, despite the growing demand for corn-based ethanol. “In addition to meeting all our demands for ethanol, the corn farmers in this country put out enough to actually increase the number of bushels of corn available for feed,” he said.

U.S. Department of Agriculture economists predict food prices will moderate to a more normal rate of increase in 2008. “That would be in keeping with the historical patterns that we had seen prior to (increased demand for ethanol),” Conner said.