True Causes of Food Price Inflation

Public debate has intensified over the extent to which the expansion of the ethanol industry has resulted in higher agricultural commodity prices.
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Since fall 2006, public debate has intensified over the extent to which the expansion of the ethanol industry has resulted in higher agricultural commodity prices and, more importantly, whether and to what extent there has been an impact on consumer food prices. To date, this debate has been fueled mainly by anecdotal information. Given that this issue has bearing on major policy decisions with respect to agriculture and renewable energy, it is imperative that an objective, fact-based assessment be available to public policymakers. The Renewable Fuels Foundation (“RFF”) commissioned Informa Economics, Inc. (“Informa”) to conduct such an assessment, and the results are contained in this report.

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