The price of oil, not biofuels, has clearly been the lever that caused the greatest movement in crop and food prices this year according to a statement released today (19th November) by the Biotechnology Industry Organization (BIO). In the statement Jim Greenwood, president and CEO of BIO also highlighted the potential benefits of biofuels including creating new green jobs and real economic growth.

The statement continued; "American consumers should not be fooled by ongoing attempts to misplace blame for this year's rise in food prices on biofuels. The evidence before consumers is clear: crop prices have fallen dramatically in the past few months as oil and gas prices have declined. A barrel of oil cost $140 in July but is currently less than $65. Similarly, a bushel of corn that was more than $7.50 back in July is now less than $4, even while production of biofuels and other food, feed and fiber demands have all remained consistent. This connection between oil and crop prices has been noted by agricultural economists throughout the year. Yet many policymakers continue to be distracted by a spurious food vs. fuel debate.

"Agricultural biotechnology continues to help increase crop yields, producing more food and biofuels feedstocks on less land. And industrial biotechnology is helping to convert corn starch and crop residues into biofuels more efficiently.

In concluding the statement said; "The nation's current goal of producing and using 21 billion gallons of advanced biofuels by 2022 is a tremendous opportunity for jobs and growth. A 2007 U.S. Department of Commerce report projects that this amount of cellulosic ethanol would replace 4.1 percent of U.S. oil imports, keeping $8.4 billion in the U.S. economy rather than sending it overseas. It also shows that producing this amount of cellulosic ethanol could add $12.6 billion dollars to U.S. consumers' pockets. Production of advanced biofuels could increase U.S. gross domestic product by $4.7 billion and, importantly, would add more than 20,000 jobs to rural economies."