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Shows Retail Food Price Have Dramatically Increased Over Last 25 Years While Farm Prices Have Declined

NEWS FROM THE AMERICAN CORN GROWERS ASSOCIATION / Contact: Keith Dittrich, 402-368-7786, [email protected]

WASHINGTON, DC...April 20, 2000--In an address before the Consumers Federation of America's 23rd Annual National Food & Policy Conference held in Washington, DC this week, American Corn Growers President Keith Dittrich showed that consumer food prices has risen sharply compared to prices farmers receive for their commodities. Dittrich, a Tilden, Nebraska corn and soybean producer, used these numbers to show that farm prices have very little relationship to retail food prices.

Dittrich showed that consumer food prices have risen nearly 250% since the 1975-1979 period but that prices farmers receive have declined or remained nearly steady in that same time frame.

"Consumers have long been given the excuse by food processors and retailers that food prices have risen because of increased farm prices. These numbers clearly show that not to be the case," said Dittrich.

Citing the failure of Freedom to Farm and the influence that giant food processors and exporting companies had on writing this legislation, Dittrich wondered why consumers of this nation should feel comfortable allowing the continued concentration of agribusiness. He predicted that two or three of these companies will very soon dominate the entire food chain from seed to finished product.

"Will consumers then get what they want in their food system - safety, reliability and fair prices? I bet not. Due to ignorance, shortsightedness and most of all greed by large agribusiness corporations, we may soon see a feudal system of agriculture paid for by the taxpayer." added Dittrich.

To change course and guarantee that family farm agriculture remains stable and viable as the major source of food for America's consumers, the ACGA has developed a comprehensive farm policy proposal that would replace the current Freedom to Farm legislation.

"This farm proposal protects not only farmers interests but also consumers as well. By ensuring a strong, safe, abundant and fairly priced food supply produced by family farmers. This would be accomplished by encouraging fair market prices, providing food reserves for consumers and allowing producers to manage their inventories," concluded Dittrich.

The food and farm prices charts presented by President Dittrich to the Consumers Federation of America are available on the ACGA web site at: www.acga.org.: