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Corn Board doesn't expect food price effect

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By The Associated Press

Sunday, Sep 07, 2008 - 04:08:18 pm CDT

LINCOLN, Neb. — Higher corn prices have been blamed this year for part of the increase in food prices.

Corn prices have dropped by about $2 per bushel since this spring. But the Nebraska Corn Board says it doesn’t expect to see much, if any, decrease in food prices because of it.

The Corn Board says energy prices and the cost of transportation play a much larger role in food prices than grain prices do.

The Corn Board’s executive director Don Hutchens says the food companies are trying to blame farmers for the increase in food costs when it’s the companies that are raising prices.


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Reader wrote on September 7, 2008 5:56 pm:
" I truly believe that higher corn prices do not cause higher food prices.
I also believe OJ will find the real killer. "

Berten Earnest wrote on September 7, 2008 7:13 pm:
" Consider the source and their motivations. The fact is that food is in a market place and there are hundreds (if not thousands) factors involved in what sets the price of any commodity. To say that the price of corn has NO effect on price is as foolish to say it is the ONLY factor that affects the price. "

Something is not right here wrote on September 7, 2008 8:43 pm:
" What? Food price is not effected by price of grain. What is this some kind of imaginary world. When the price of grain goes up, the price of food will also go up. When the price of fuel goes up the price of other things will go up. The only thing is when all of these go up, the price of labor will not keep pace and it will be difficult in the long run for a laboring person to keep up. Wages and Salaries will not increase as fast as the prices that laborers pay for services. Therefore, the laborer will become less able to purchase the product and in the end, everyone will suffer because the laborer will not make enough to live and the producer of the commodity will not have enough purchasers and therefore the price will eventually go down. Sounds simple doesn't it but thats what happens. "

Wow wrote on September 7, 2008 9:34 pm:
" It's like Exxon saying the rise in oil prices has nothing to do with the increased price of gasoline. That is a perfectly fair analogy. And to be clear, the farmers are not at fault. They don't set prices. In part, it's the fault of the government subsidizing ethanol production. I don't think the corn board should apologize, but, at the same time, they should not be lying to our faces. "

whatever wrote on September 7, 2008 11:26 pm:
" Of course transportation and energy costs have an impact of prices, but so does the cost of the commodity. Just how stupid do you think we are? It's idiotic statements such as this that makes us the "dumb ignorant hick" look at organizations such as yours as self serving and dishonest. "

Galen wrote on September 8, 2008 6:45 am:
" The Corn Board also has beach front property for sale in Arizona....... "

DMO wrote on September 8, 2008 7:26 am:
" The ignorance my urban neighbors exibit is staggering. What do you eat that contains corn? Cornflakes? Cost of corn in that is 7 cents. The major food items the corn [and soybeans] go into are livestock feed.Two years ago wholsale ribeyes were $8 a pound. Now the price is 5 something. Bottled water is around $2 a pound. How would you like to be a cattle feeder this summer and loose $200 per head each steer you sold. Just because we pay more for food does not mean the money is going to the people whom produce the raw materials. "

the point of the article wrote on September 8, 2008 9:56 am:
" Is that corn prices do not affect food prices as much as energy prices. Think about it. Corn prices have dropped 20% in the past few months. Have your grocery bills gone down? Of course not. So what is making food more expensive in the first place, since it's obviously not corn prices? "