The USDA made the case during a US Joint Economic Committee hearing on the rising cost of food late last week.

USDA chief economist, Joe Glauber, testified before the committee and said no single factor is causing the projected 4-5pc increase in retail food prices.

"Several key factors are shaping the current situation, including domestic and global economic growth; global weather; rising input costs for energy; international export restrictions; and new product markets, particularly biofuels," Mr Glauber said.

Members questioned Mr Glauber about the high commodity prices and their correlation to food costs.

"Higher commodity prices are contributing to the increase in food price inflation, even though, on average, the farm value accounts for only about 20 cents of each dollar spent on food," Mr Glauber said.

"For highly processed foods, such as cereal and bakery products, the farm component of the retail value is less as processing costs account for a higher portion of the retail value."

But Mr Glauber admitted that much of the increase in corn and soybean prices could be attributed to increased biofuel production, although several other factors have contributed as well.

SOURCE: FarmProgress, USA.