(Midlands News Service) -- Ethanol contributes to increased food prices, but it is a minor factor, a Nebraska economist said last week. During a five-year period ending in February, ethanol was responsible for food prices rising by no more than 2% while total U.S. food prices went up about 16%, University of Nebraska-Lincoln economist Richard Perrin said at the monthly meeting of the Nebraska Ethanol Board. “Obviously, ethanol is a contributor,” Perrin said, “but it’s obvious that it’s not a very big contributor.” Perrin said his research and analysis were not funded by the ethanol industry. About 40% of the increase in corn prices, Perrin said, can be attributed to the demand for ethanol. Adding to the corn demand are increased world population, income growth around the world and speculators bidding on commodities.
