Some special interests are claiming that renewable fuel is raising the cost of your Thanksgiving turkey. The fact is that turkey prices are lower this year than they were in October of last year. Renewable fuel does not dictate the price of a turkey and it does not dictate the price of your food.
Despite a decrease in the price of a turkey, food prices on the whole have gone up. But that is a result of rising oil prices, which have skyrocketed since 2005.
The oil sector, threatened by increasing fuel diversity, is trying to mislead consumers to turn back the clock on our progress in creating alternatives to oil.
Let’s take a closer look. Corn makes up 3 cents of every dollar spent on food at the grocery store. The rest comes from things like transportation, marketing, labor and packaging. Those Super Bowl commercials advertising for your favorite snack aren’t cheap. And paying for the petroleum to transport food inputs isn’t cheap either. Costs like those—costs that have nothing to do with the crops that go into your food—make up $.84 of each food dollar you spend at the market. As oil prices fluctuate, food prices follow because petroleum is a large input into food prices. Corn is not.
The EPA set out to discover the true impact of the Renewable Fuel Standard (RFS) on corn prices. And they found that the RFS has not had a significant impact on corn prices. In a study that included 500 scenarios, in nearly every case, EPA concluded that waiving the RFS for a year had no impact on corn prices.
Self-interested players are twisting the facts to try to kill an industry that is creating American jobs, increasing our energy security and delivering alternatives to oil. Thanks to the EPA analyses, and a cornucopia of other data showing the reality that the RFS is working, we no longer need to eat the false choice between food and fuel.