Today, the National Council of Chain Restaurants released a study that seeks to blame the Renewable Fuel Standard for rising food prices. But we know that chain restaurants like to super size everything and their misguided analysis of how corn prices impact their bottom line is no different.
Numerous independent studies and a recent EPA analysis have affirmed that ethanol production has little to no impact on corn prices, and therefore little to no impact on food and feed prices.
Oil prices, not corn prices, dictate food prices. Out of every dollar spent on food, 84 cents goes to transportation, packaging, and other inputs that are dependent on oil. In fact, there is a direct correlation between food prices and oil prices – as oil prices rise, so does the cost of food.
Thankfully, renewable fuel is lowering prices at the pump. An Iowa State University study found that the average consumer saved $1.09 per gallon in 2011 because of ethanol – that’s a lot of trips to the drive-thru.
The RFS also reduces the amount of fuel we need to import. Americans saved $50 billion on imported fuel costs last year.
More than 400,000 Americans have careers thanks to the RFS, and the policy has driven billions of dollars of investment in new types of domestic, renewable fuel.
The Renewable Fuel Standard (RFS) is America’s sole policy for producing alternatives to oil, and even the NCCR report admits that it is working, calling the RFS the ‘key policy encouraging increased ethanol production over the last decade.’
The NCCR is trying to create a false distinction between corn ethanol and advanced renewable fuel. Both are integral components of an industry that is creating a more energy independent America, lowering prices at the pump, and creating good paying jobs for Americans.
Looking at this mountain of misinformation, it seems that the NCCR took a cue from their member company Domino’s Pizza and conducted their research in 30 minutes or less.