IMPACT ON FOOD PRICES
- Since the inception of the RFS, the price of corn has fluctuated dramatically.
- Corn is a foundational ingredient in the American food supply and is used not only as a value-added product in many of the foods we buy but also as the primary feed grain in animal agriculture.
- Volatility in corn prices causes volatility for every food in the supply chain, from baked goods to meat products to ice cream.
Before the RFS was enacted, corn prices were fairly stable, but the RFS has introduced tremendous volatility into food commodity markets, resulting in wildly fluctuating prices for corn and animal proteins that use it.
1 Energy Information Administration, Annual Energy Outlook, 2004, 2012, and 2014.
2 Congressional Research Service, Renewable Fuel Standards (RFS): Overview and Issues, March 13, 2013 pp.19-23; 21-22.