NCGA, Others Call on Congress to Investigate All Causes of Food Price Increases (6-12-08)

The National Corn Growers Association and other agriculture interests today called on Congress to investigate all the reasons for rising food prices. Critics, citing biofuels production and higher commodity markets, have wrongly blamed record high food prices on farmers.

“America’s farmers and ranchers have provided the safest, most abundant and affordable food supply for the past 230 years and consumers spend less per capita on food than anyone in the world,” the letter states. “Given the real struggle American families face to put fuel in their gas tanks and food on the table, the complete story needs to be told in order to gain a truthful understanding of increased food prices.”

The groups recognize the affect higher food prices are having on consumers but reiterate the importance of studying the larger picture. With farmers receiving 20 cents of every food dollar consumers spend, other factors, such as labor and energy costs, financial speculation, increased demand, weather production losses, the weak dollar and even excess profiteering, have a more significant impact on food prices.

The letter to Congress concludes: “We urge you to undertake comprehensive hearings on this subject without delay. Such hearings should focus on the underlying causes of the rise in prices, which sectors are responsible for the rise in prices, and whether any have benefited unduly from such price increases.”

In addition to NCGA, the National Farmers Union, American Farm Bureau Federation, American Soybean Association, National Sorghum Growers Association and National Association of Wheat Growers signed on to the coalition letter.

Click here to read the letter.