Ethanol Not To Blame For Rising Popcorn Prices

Recently, the ethanol industry has been blamed for rising popcorn prices.  In an editorial piece writen by the McCook Nebraska Daily Gazette, basic economics explains the snack food’s higher prices. 

A combination of more and more corn acreage being converted to alcohol production, dry field conditions, higher packaging rates, distribution and transportation costs contribute to a higher cost for popcorn.  

According to the editorial, transportation costs caused by a higher cost of fuel is a problem the ethanol industry is currently trying to solve.

In addition, a story by the Associated Press revealed that U.S. farmers harvested about 890 million pounds of popcorn from 214,243 acres in the cornbelt. 

The Popcorn Board reported that Americans eat 17 billion quarts of popcorn per year, and about 70 percent of this popcorn is eaten in the home.  The fall and winter months are the most popular times for popcorn consumption.

For perspective, the Associated Press story cited that a pair of Ohio brothers expect to receive at least 13 cents a pound for this year’s crop, compared to 9 cents a pound for last year.

Read the full story at http://www.mccookgazette.com/story/1233113.html.