Statement from ABA President & CEO Robb MacKie on the need to reevaluate the current corn-based ethanol mandate:
“The National Council of Chain Restaurants (NCCR) study released today suggests that the annual impact of the corn-based ethanol mandate to chain restaurants would be between $3.2 billion and $503 million each year in higher food prices. The negative impact of the ethanol mandate is multiplied many times over, as the baking industry bears a significant portion of that unnecessary cost. Ultimately, American families bear the cost at restaurants and grocery stores.
“The corn-based ethanol mandate impacts the baking industry twofold: First, the government mandate to grow corn for fuel instead of food drives farmers to move away from planting wheat; second, the wheat market typically follows the much larger corn market, and when corn prices rise due to government created demand for ethanol, wheat prices rise as well. With an estimated 40 percent of the corn crop needed to satiate demand for the corn-based ethanol mandate, there is little doubt that the mandate impacts corn prices and supplies, which will also impact the wheat market.
“ABA once again calls on Congress to stand with consumers and repeal the corn-based ethanol mandate.