HILL BRIEFS

USDA Economist Predicts Food Prices Will Ease Next Year

Thu. May 1, 2008


Agriculture. USDA Chief Economist Joseph Glauber told the Joint Economic Committee today that he expects soaring food prices to moderate in about a year, barring weather catastrophes. Glauber attributed the 4 percent increase in the Consumer Price Index for food in 2007 to rising energy costs, international export restrictions, weather and new product markets, especially biofuels. While some committee members and witnesses suggested that federal ethanol requirements are contributing to the problem, National Farmers Union President Tom Buis said the "real culprit" is the cost of energy. Sen. Sam Brownback, R-Kan., said the federal government should not "exacerbate the problem" with its policies, but also spoke up for ethanol. "Gasoline prices are way too high, but they would be higher without biofuels," he said.