Our Nation's Policy Leaders and Experts Agree that Grain-Based Ethanol Contributes to an Increase in Food Prices

Bush Administration

"Ethanol is having an impact on the food marketplace and the crop marketplace, on those commodities. To the extent that you are subsidizing biofuels, it's having an effect on the federal budget and other factors."
-Former Secretary of Energy Spencer Abraham, Interview on Fox Business News, 5/20/2008

"We think that it's not a large part of the problem, but it may, in fact, be a part of the problem, the ethanol debate."
-Secretary of State Condoleezza Rice, Speech to Peace Corps 2008 Conference, 4/28/2008

"While much of the increase in the farm prices for corn and soybeans can be attributed to increased biofuels production, other factors have also contributed to the sharp increase in prices for these commodities."
-USDA Chief Economist Joseph Glauber, Testimony before Joint Congressional Hearing, 5/1/2008

"We estimate that U.S. ethanol production from corn accounts for about 20 percent of the rise in corn prices over the last 12 months…"
-Council of Economic Advisors Chairman Edward Lazear, Testimony before Senate Foreign Relations Committee, 5/14/2008

Presidential Candidates

"The Federal government might need to rethink its support for corn ethanol because of rising food prices… If it turns out we need to make changes in our ethanol policy to help people get something to eat, that has got to be the step we take."
-Senator Barack Obama (D-IL), Interview on NBC's Meet the Press, May 4, 2008

"It isn't a surprise that food prices are rising when more than 25% of the corn grown today is taken out of the food supply and instead used for subsidized ethanol production. We need to put an end to flawed government policies that distort the markets, raise food prices artificially, and pit producers against consumers."
-Senator John McCain (R-AZ), Statement, May 2, 2008

Governors

"We appreciate the good intentions behind the push for renewable fuels. In fact we're diversifying our state's energy portfolio at a rapid rate, but this misguided mandate is significantly affecting Texans' family food bill. There are multiple factors contributing to our skyrocketing grocery prices, but a waiver of RFS levels is the best, quickest way to reduce those costs before permanent damage is done."
-Texas Governor Rick Perry, Waiver request to the EPA, 4/28/2008

"As unrelated as the cost of a gallon of gas and a gallon of milk might seem, these price increases actually have a common link: corn. The demand for ethanol – either as an additive to gasoline or as the primary component in fuels such as E85 – has increased sharply in recent years. Since most ethanol is made from corn, that demand has meant there is less of the crop for use as food for people and animals. Moreover, many farms are opting to switch from crops such as wheat to corn because of the higher price commanded by corn."
-Connecticut Governor Jodi Rell, Letter to President Bush and Congressional Leaders, 5/1/2008

U.S. Congress

"In recent weeks, the correlation between government biofuel mandates and rapidly rising food prices has become undeniable. At a time when the U.S. economy is facing recession, Congress needs to reform its 'food-to-fuel' policies and look at alternatives to strengthen energy security."
-Senator Kay Bailey Hutchison (R-TX), Investor Daily Business Op-Ed: "Undoing Ethanol's Mistake," 4/25/2008

"U.S. ethanol policies may be partly to blame for a global food crisis threatening to leave millions hungry."
-Senate Majority Whip Dick Durbin (D-IL), Press Conference, 4/28/2008

"This is a classic case of the law of unintended consequences. Congress surely did not intend to raise food prices by incentivizing ethanol, but that's precisely what's happened."
-Congressman Jeff Flake (R-AZ), "High food prices may put farmers on a subsidy diet," Los Angeles Times, 5/2/2008

"Corn ethanol was presented as an almost Holy Grail solution. But I believe its negatives today far outweigh its benefits. ... We need to revisit this ... and back away from the food to fuel policy."
-Congressman Mike Doyle (D-PA), "With Food Costs Rising, Lawmakers Debate the Benefits of Ethanol," Associated Press, 5/6/2008

Environmentalists

"Turning one-fourth of our corn into fuel is affecting global food prices."
-Lester Brown, Director, Earth Policy Institute, Washington Post Op-Ed: "Ethanol Failed Promise," 4/25/2008

"Unwise policy design choices can not only negate the potential energy and emission benefits of biofuels, but can also impact human welfare through higher food prices, and damage the environment through deforestation and more intensive farming."
-Britt Childs, World Resources Institute's Climate, Energy, and Pollution Program analyst, "Ethanol Mandates Could Drive Up Food prices, Enviros say," Cybercaset News Service, 2/4/2008

"It's almost certain that most of the rise in corn prices is due to the U.S. ethanol policy."
-David Victor, director of the Program on Energy and Sustainable Development at Stanford University, "Ethanol Demand Threatens Food Prices," Technology Review, 2/13/2007

World Hunger Experts

"Ethanol contributes 30 percent of the overall food price rise from 2000-2007. The biggest impact was on maize prices, for which increased biofuel demand is estimated to account for 39 percent of the increase in real prices. Increased biofuel demand is estimated to account for 21 percent of the increase in rice prices and 22 percent of the rise in wheat prices."
-Mark Rosegrant, Division Director for Environment and Production Technology, International Food Policy Research Institute, Testimony Before the U.S. Senate Committee on Homeland Security and Governmental Affairs, 5/7/2008

"If you put three economists in a room you'll get four different theories on the role of biofuels, but we all agree they have an effect."
-Hafez Ghanem, UN FAO Assistant Director General, Briefing at the UN Summit, Associated Press, 6/5/2008

Agriculture Experts

"If you didn't have this large growth in ethanol corn, (corn) prices would be nowhere near where they are today."
-Bruce Babcock, director of the Center for Agricultural and Rural Development at Iowa State University, Interview with Washington Post: "Siphoning Off Corn to Fuel Our Cars," 4/30/2008

"...the ethanol industry alone is responsible for …. 30-40% of the increase in grain prices over the past two years…"
-Professor Perrin, Department of Agricultural Economics, "Ethanol and Food Prices-A Preliminary Assessment," University of Nebraska, 4/2008

Financial Experts

"Ethanol is a very expensive way of delivering gas, and it has made food more expensive. We still have $116 oil with more ethanol being produced. We've still got expensive gas and unfortunately, way more expensive corn and soybean, because people divert to corn and then soybeans go up in price and so on."
-Warren Buffett, Interview with CNN, 5/5/2008

"Demand for ethanol and other biofuels is a significant contributor to soaring food prices around the world."
-World Bank President Robert Zoellick, Press Conference, 4/11/2008

"IMF estimates suggest that increased demand for biofuels accounts for 70 percent of the increase in corn prices and 40 percent of the increase in soybean prices."
-John Lipsky, First Deputy Managing Director International Monetary Fund (IMF), Speech to Council on Foreign Relations, 5/8/2008

"...the ethanol boom has driven up corn prices about 25 - 40 percent."
-Randy Fortenberry, University of Wisconsin-Madison Economic Professor, Interview with Milwaukee Journal Sentinel: "GOP group wants curbs on ethanol," 5/6/2008

"I don't think anybody knows precisely how much ethanol contributes to the run-up in food prices, but the contribution is clearly substantial."
-C. Ford Runge, Economics Professor at University of Minnesota, Interview with New York Sun: "Food Crisis Starts Eclipsing Climate Change Worries," 4/25/2008

"...it is very likely that the rapid build up of the ethanol industry has helped to contribute to higher food prices globally."
-Chris L. Shaw, UBS Investment Research analyst, Interview with Associated Press: "Shares of Ethanol Rising," 5/12/2008