Just two years ago when corn prices were up due to the drought, critics were blaming higher food prices on the use of corn for ethanol. Today, corn prices are lower than the cost of production, but food prices are still rising.

The Renewable Fuels Association (RFA) has released a new report that shows how false food versus fuel claims are when retail food prices have remained steady or increased recently as corn prices have fallen.

RFA Senior Vice President Geoff Cooper says the report compared corn prices to the price of dairy products, pork products, beef products, and poultry and egg products from January 2007 – July 2014. “We found no evidence whatsoever that volatile corn prices were reflected in retail prices for those products,” said Cooper. “For dairy, we actually saw an inverse relationship at times, when you had corn prices moving higher there were many periods where milk and cheese prices were moving lower.”

Beef and pork prices are up significantly this year due to higher demand and reduced supplies. “Those increases are happening at a time when we’re seeing corn prices plunge,” said Cooper. Corn prices went from a peak of $7.53 a bushel in August of 2012 to less than half that now. “Today September corn is selling at $3.36 a bushel,” Cooper said. “Farmers are losing money if their selling corn at that price.”

Breakeven is at least $4 a bushel and there are no deficiency payments anymore to make up the difference. “We are quickly moving into a situation that has a lot of people worried in farm country,” Cooper added. Interview with Geoff Cooper, RFA