WASHINGTON – A new report by the Government Accountability Office (GAO) found that supermarket prices for food have climbed by 128 percent since 1982 – four times the increase in crop prices for farmers. Tom Buis, CEO of Growth Energy, called the report a “clear refute” of Big Food’s erroneous claim that ethanol led to high food prices.
“Last year the Grocery Manufacturers Association developed a multimillion dollar misinformation campaign to blame American farmers and ethanol producers for higher food prices. Here is yet another study that shines the light of truth on the whole food-versus-fuel fiction that Big Food was peddling,” Buis said. “Now it’s the GAO that is saying that farm prices are a fraction of the hike to grocery bills. Whatever is driving up grocery prices won’t be found on the farm and it merits further investigation by Congress. In the meantime, Growth Energy will focus on the opportunity that ethanol offers this country – creating green jobs, cutting greenhouse gas emissions, and making America more energy independent.”
The GAO report found that since 1982, farmers have generally received higher monthly prices for their commodities, but these prices have increased less than food prices and inflation in the broader economy. Specifically, farmers saw prices for beef, pork, dairy, grains, and other commodities, increase by 34 percent from January 1982 to April 2009. For the same period, food prices rose by 128 percent, and prices in the general economy rose 102 percent. The study was requested by Senators Herb Kohl (D-WI) and Chuck Grassley (R-IA).
About Growth Energy
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach. Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. More information can be found at GrowthEnergy.org.