Over at Townhall.com, IWF’s Carrie Lukas takes a look at rising food prices:
According to the Bureau of Labor statistics, the cost of “food at home,” or food purchased at grocery stores, rose by 5.6 percent between December 2006 and December 2007. This included big increases in some family staples: the cost of milk increased nearly 20 percent, cheese by 13 percent, and bread by more than 10 percent. Why are families seeing their food bills climb?
The government’s energy policy shares the blame. Mandates that we use more ethanol have encouraged farmers to grow more corn, which can be used to create ethanol, and as a result farmers dedicated more of their farmland to this one crop. In 2007, twenty percent more acres were used for corn production than in 2006. The greater demand for corn made the price of corn-and products that depend on corn, such as poultry and beef-jump. But since the focus on corn left less land for raising other agricultural products, the price of commodities such as soybeans and wheat also rose to historic highs. If Congress continues to subsidize the production and mandate the use of ethanol, consumer food prices will continue to rise higher.
Read the whole article here.