In recent weeks, a flood of reports and statements has claimed that the world's biofuel programs—in particular the U.S. corn ethanol effort—is starving poor people around the globe. Even the UN's special rapporteur for the Right to Food decried biofuel production as "a crime against humanity."
It seems so obvious: With so much corn being turned into fuel, food shortages must inevitably result, and biofuel programs must be the cause. However, that's completely untrue.
{xtypo_quote_left} Higher fuel prices increase the cost of production, transport, wages
and packaging, the main cost of retail food. For example, a $3 box of
cornflakes contains 15 ounces of corn that cost 8 cents when bought
from the farmer. So, farm commodity prices have almost no effect on
retail prices. But the effect of oil price increases can be huge. {/xtypo_quote_left}
Here are the facts. In the last five years, despite the nearly threefold growth of the corn ethanol industry (or actually because of it), the U.S. corn crop grew by 35 percent, the production of distillers grain (a high-value animal feed made from the protein saved from the corn used for ethanol) quadrupled and the net corn food and feed product of the U.S. increased 26 percent.
Contrary to claims that farmers have cut other crops to grow more corn, U.S. soybean plantings this year are expected to be up 18 percent and wheat plantings up 6 percent. U.S. farm exports are up 23 percent.
America is clearly doing its share in feeding the world.
Read More: The Chicago Tribune
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