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Decrease in Oil Dependency Causes Debate on Food Prices - VIDEO STORY



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DETROIT - July 26, 2007: With ethanol production increasing, the price of corn – the fuel’s primary ingredient – has also risen. As a result, more people are now blaming ethanol for a rise in food prices. However, General Motors (GM) reports that studies indicate the price of gasoline has twice the impact on the cost of food than the price of grain, due to the energy it takes to process, package and deliver corn for sale to consumers. In addition, the National Corn Growers Association indicates U.S. farmers have prepared for the growing ethanol demand by planting an estimated 93 million acres of corn this past spring. Due to this increase, GM officials report there is an abundance of corn to supply both food and fuel needs. Currently, standard vehicles can operate on fuel mixtures with up to 10 percent ethanol, while Flex Fuel vehicles use up to 85 percent ethanol.