Consumers Blame Oil for High Food Prices
A recent nationwide survey indicated 82% of consumers agree foreign oil-producing countries and the high cost of fuel impacting farming and processing, packaging, storing and shipping food are to blame for food price increases, not U.S. farmers.

"Big Food" Raise Food Prices to Fatten Their Bottom Line
The nation's largest food companies, all members of the trade group the Grocery Manufacturers of America were recently exposed for funding a public relations smear campaign to blame biofuels for rising food costs.

Now a new analysis by FoodPriceTruth.org reveals that the corporate profits of these same giant food companies have soared over the past 12 months as much as 121% in the case of the Campbell Soup Company.

Stallman called it ironic that the governor would complain that the EPA’s refusal to grant a waiver from renewable fuel mandates lacked common sense, when he blatantly ignored the common sense of agricultural experts in his own state. In a report he requested, experts from Texas A&M University (download) told Gov. Perry that “relaxing the renewable fuels standards does not result in significantly lower corn prices.”

Stallman acknowledged that as a result of ethanol, food prices are slightly higher, but many other factors have had a profoundly greater impact.  What must also be acknowledged is that for every $1 of higher food costs consumers are paying, they are saving $2 in lower gasoline costs because of the impact of ethanol on fuel supplies.

For months, Texas Gov. Rick Perry swarmed to media microphones, blaming ethanol for high food prices and demanding the EPA do something about it.

Today, the EPA did do something... denied his request.

"It'll be an interesting debate, but it shouldn't be taken too seriously," said Illinois Farm Bureau's Mary Ellen Fricke. "Open forums too often accept opinions as fact. That can hurt real food price solutions." Fricke is looking forward to the debate though, "The Economist attacks some big thinkers. I hope it can spark conversations that help keep the entire world well-fed."

You may feel a pinch in your wallet lately, but rest assured, Americans end the smallest amount of their disposable income on food.

You Don't Eat "Ethanol Corn"
Boy, oh boy. There's a lot of confusion when it comes to corn, ethanol, and food supply. Some politicians and food companies would like you to believe that corn is ripped off the grocery shelves and turned into ethanol. Not so. In fact, the corn on your table and the corn in your gas tank are two totally different kinds.

Texas Gov, $100,000 donation
& the Food-Price Blame Game
Glossing over astronomical oil prices, Texas Gov. Rick Perry swarmed to media microphones, claiming ethanol is the cause of high food prices.

But a study from one of his own universities, Texas A&M, says the opposite is true. So what's Perry's real motivation? Recently revealed details suggest a $100,000 donation may be behind Perry's food price rant.

Food Prices Up,
Except for Cheese and Eggs
Retail food prices at the supermarket increased in the second quarter of 2008, according to the latest American Farm Bureau Federation Marketbasket Survey.

The informal survey shows the total cost of 16 basic grocery items in the second quarter of 2008 was $46.67, up about 3.5% or $1.64 from the first quarter of 2008.

But not all hope is loss. Two food stables have drop in price!

Bigger Salaries Mean Bigger Food Costs
On July 1, Illinois’ state minimum wage increased to $7.75 an hour. This salary will help nearly 650,000 workers cope with the rising cost of living and basic necessities, gas, rent, childcare, medicine… and groceries! But wait, there's more to the salary-food bill connection than you may realize.

Corn Farmers Take to YouTube
Illinois Corn Growers Association is tackling the myth that ethanol is the cause of high food prices and the "nonsense fear" that there is not enough corn to supply the world with food and fuel. In fact there are numerous ethanol videos on YouTube. Surf around and see for yourself.

There are numerous reasons for the difference, including the percentage of raw farm product in the food, commodity speculation, and is it an item where farmers can set their own price. Check out this photo gallery to see the ups and downs of food prices on your favorite staples.

Flood Photo Gallery
Illinois Farm Bureau photographer Ken Kashian captured images of human spirit and grit as he toured the flooding Mississippi River in Hancock County, Illinois. His online gallery features men and women trying to protect and recover as many farm products as possible.

(The gallery will be updated as waters moves towards crests in Illinois.)

Visit Mississippi Flood Photo Gallery

China Hungers for
Record Number of Soybeans
Global demand can be… well, demanding on food prices. While the soybean market has little impact retail food prices, China’s recent $4.8 billion soybean purchase demonstrates the changing global demand. More about China's demand and food prices

Flood May Temporarily Increase Meat Prices
Floodwaters in Iowa have damaged nearly 1.3 million corn acres and up to 2 million acres of soybeans. Although corn has increased by $1.50 a bushel, most foods at the grocery store level won’t be impacted, according to an Iowa Farm Bureau. More about the flood and meat prices

Midwest Floods Have Little Impact on Food Prices
There is no doubt that weather affects food prices, but the flooding in Illinois and Iowa isn’t so… well, cut and “dry." The flooding has hurt thousands of corn and soybean acres­– two commodities that represent small amounts of food costs. For example, there is only 6¢ of corn in a 12 oz. box of corn flakes. Even if the price of corn would double due to shortage, there would only be 12¢ of corn in a box that retails for $3.00. More about the flood and food prices

With no immigration reform, farmers are having a hard time finding workers to pick crops like cabbage and tomatoes. Some farmers are growing less,

some are turning to expensive equipment, and others are making long-term decisions, like chopping down their cherry trees. No matter what the decision is – shortages mean higher prices. More about immigrant labor and food prices

Click to enlarge fuel, food, CPI inflation chart

And now, the news has gotten even better. Ethanol is saving you big bucks at the pump. According to the American Coalition for Ethanol, ethanol in America’s gasoline supply saved drivers more than $100 million during the three-day Memorial Day weekend.

Merrill Lynch analysts estimate if ethanol production was not expanding, oil would cost $155 per barrel and regular gasoline would average $4.45 per gallon across the nation. Ron Lamberty, a spokesman for the American Coalition for Ethanol, said although it might not seem like it because of high gas prices, ethanol saves motorists almost $35 million a day.

“Without ethanol, Americans would pay a billion dollars more each month for gas,” said Lamberty. More about how ethanol reduces fuel costs

Farm Expenses Up:
Farmer Share of Food Dollar Unchanged
It seems like a magic trick. The cost of farming jumps up, but the percentage of the grocery dollar that goes to farmers stays the same. But there’s no slight of hand here. This new discovery simply shows how there is so much more than impacts the price of food that what happens on the farm. More about farmer's share and food prices

Will Fair Farm Prices Lower Food Costs?
Experts are calling recent hog prices a "miracle." The market has turned and pork producers are breaking even much sooner than expected… but what does this mean at the check out line? More about farm prices and food prices

Chinese Appetites Key Food Price Driver?
A growing, hungry China plays a far more significant role in rising food costs than the ethanol boom, according to a new study by Biofuels Digest. The study cites growing Chinese meat consumption as a prime factor in global grain shortages and rising food prices. More about China's demand and food prices

Food Bank Says:
Pass Farm Bill for U.S. Hungry
America's Second Harvest, the nation's largest charitable hunger-relief organization, has written a letter to President Bush, urging Farm Bill passage. More about Farm Bill and food banks

When Sales Aren’t Sales
Saving money at the grocery store can be as easy as stumbling onto a great sale. But buyer beware! Take advantage of sales… and there are always ways just to “get taken.” More ways to save at the grocery store

President: Food Aid Will
Help Fight World Hunger
President Bush asked Congress to approve $770 million in new global food aid for the coming fiscal year, the centerpiece of an evolving administration response to a crisis that has sparked increased violence and hunger around the world. More about food aid and prices

• Food & Blamin’ – This 30-second spots discusses the many reasons for higher food prices. Food & Truckin’ – This spot explores the rising diesel cost.Food & Freezin’ – Blizzards and droughts take center stage in this commercial.Food & Farmin’ – This spot talks about the farmer’s share in a box of cereal.
• Food & Scaremongerin’ ­– This ad tackles the ethanol myth, straight on.

Why Read About Food Prices?
Watch a food price video instead. Catch this news story about ethanol and the price of food.

Copyright © 2008 Illinois Agricultural Association ®