Indiana Corn

“Over the past year, there has been much discussion in the media, in academics, and in the Congress about ethanol and whether its use has an impact on food prices that consumers pay at the grocery store checkout...” This is the first line of a letter from U.S. Senator Charles Grassley of Iowa sent October 28, 2008 to the Grocery Manufacturers Association (GMA). The GMA has been an outspoken detractor of ethanol and has blamed high commodity prices and high consumer food prices on the federal government’s ethanol mandate. Sen. Grassley’s letter goes on to say “…when oil prices and commodity prices rose earlier this year, food processors and grocery stores reflected their higher input costs almost immediately, passing them on to consumer. However since commodity prices have declines over the past three months, we have seen retail food prices continue to rise…” Click here to view Sen. Grassley’s full letter.