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Last modified: Monday, August 11, 2008 9:49 AM CDT
Commodities not necessarily responsible for high food prices
by Kathleen Leinen • Daily News
A few months ago, North Dakota Farmers Union explained the fact and fabrication of what is really driving today’s food prices.
Once again, North Dakota’s farmers feel the need to explain how the price they receive for their crops is not the reason the cost of food across the country continues to rise.
Gerald Sundquist, member of the Richland County board, said Farmers Union is calling this popcorn theories. They are looking for a kernel of truth.
Earlier this year, Kansas City-based AMC Entertainment Inc., announced it was increasing the price of popcorn at its movie theaters by 25 cents because of a jump in the price of a bushel of corn. Farmers Union argues the price per bushel for unpopped corn would have to be nearly $50 to warrant the quarter increase in a one-gallon bag of popcorn. The current market price for a bushel of popcorn is about $7.28, which is well below the cost to warrant the increase.
The rise in food costs throughout the past two years impacts every man, woman and child in America. One of the most popular theories for the increase is the production of biofuel, specifically corn-based ethanol. The theory’s premise says farmers are planting more acres of corn to receive high commodity prices, which takes acres out of production for other crops. This results in shortages which causes the increased retail food prices. This thought has spread throughout the American economy and even into the movie theater industry, said information supplied by Farmers Union.
“The fact is corn and other commodity prices have little to do with today’s rising cost of food. Many of the explanations for why food prices are rising are as fluffy and fabricated as some of the most memorable characters to have ever graced the silver screen.”
North Dakota Farmers Union has a goal to differentiate the facts from the fabrications - fabrications being “The Popcorn Theories” - in the discussion on what is driving today’s high prices.
The most important factor driving high food costs today is oil at $140 a barrel, or more. The cost of transportation has affected everyone, and will continue to do so with increased costs at the store.
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