According to two studies, a 50 percent increase in allowed limits of ethanol use in gasoline will result in higher feed costs for livestock and food producers and higher food prices for consumers.
The two studies by Advanced Economic Solutions and FarmEcon, were completed on behalf of the Grocery Manufacturers Association and National Turkey Federation. The two have formed a coalition called Food Before Fuel, according to Meatingplace.com.
The coalition has voiced its opposition to a petition that would raise the ethanol-gasoline blend rate to as much as 15 percent from the current 10 percent.
Raising the limit to 12 percent would require boosting the total U.S. crop to 101 million acres and using 42 percent of the crop to make ethanol, says Bill Lapp, president of Advanced Economic Solutions. Lapp contends that a 15 percent inclusion rate would require 111 million acres and use 48 percent of the crop to produce ethanol.
Read more about the Food Before Fuel coalition.