NY Times Agrees - Biofuels Cause of Soaring World Food Prices

This editorial from the NY Times today, "The World Food Crisis" 4-10-08, at ://www.nytimes.com/2008/04/10/opinion/10thu1.html?_r=1&ref=opinion&oref=slogin .

Most Americans take food for granted. Even the poorest fifth of households in the United States spend only 16 percent of their budget on food. In many other countries, it is less of a given. Nigerian families spend 73 percent of their budgets to eat, Vietnamese 65 percent, Indonesians half. They are in trouble.

Last year, the food import bill of developing countries rose by 25 percent as food prices rose to levels not seen in a generation. Corn doubled in price over the last two years. Wheat reached its highest price in 28 years. The increases are already sparking unrest from Haiti to Egypt. Many countries have imposed price controls on food or taxes on agricultural exports.

What is causing these increases in food prices?

The rise in food prices is partly because of uncontrollable forces — including rising energy costs and the growth of the middle class in China and India. This has increased demand for animal protein, which requires large amounts of grain.

But the rich world is exacerbating these effects by supporting the production of biofuels. The International Monetary Fund estimates that corn ethanol production in the United States accounted for at least half the rise in world corn demand in each of the past three years. This elevated corn prices. Feed prices rose. So did prices of other crops — mainly soybeans — as farmers switched their fields to corn, according to the Agriculture Department. (Emphasis added)

Is ethanol the solution to our energy problems? The Times says:

At best, corn ethanol delivers only a small reduction in greenhouse gases compared with gasoline. And it could make things far worse if it leads to more farming in forests and grasslands. Rising food prices provide an urgent argument to nix ethanol’s supports.

The rich world needs to act quickly, because it caused the problem:

Last month, the World Food Program said rising grain costs blew a hole of more than $500 million in its budget for helping millions of victims of hunger around the world...Rich countries’ energy policies helped create the problem. Now those countries should help solve it.