Ethanol production is not the culprit behind increases at the grocery store

This is a response to the recent letter from Ted Roth. Several issues need to be clarified.

Ethanol production has had a very minimal effect on food prices. Studies have proven that almost all of the increase in grocery store prices have come from the increase in oil prices, for example, the huge increases in transportation costs to get the food to the store, and the increased costs of packaging, which is often made from oil (think plastic containers).

In the same paper your letter appeared, did you notice the article showing tomato prices up 28 percent, bananas up 17 percent, oranges up 30 percent — none of which have nay tie to corn or milo used in ethanol production. The price farmers and ranchers are receiving for their fat cattle hasn’t hardly increased at all, yet the price you’re paying for beef has gone up, thanks again to the increases mentioned above.

I read an article today that noted that if it wasn’t for the ethanol factor in place today, grocery store costs would be even higher because we wouldn’t be offsetting five percent of our oil use with ethanol.

For the first quarter of 2008, America’s oil use actually dropped for the first time in decades. And for the record, the federal government subsidy of ethanol has been 55 cents per gallon, and in the currently proposed farm bill it drops to 49 cents per gallon.

Please remember the farmer sees only about 16 cents out of the cost of a loaf of bread. The current increase in grain prices isn’t raising your grocery bill hardly at all, but it is helping the local economy (think jobs at Agco in Hesston). Remember, without farmers we’d all be naked and hungry.

— Sincerely,

David Fulton,

Ag Loan Officer for Mid Kansas Credit Union,

Newton