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Published on Tuesday, February 12, 2008

Guest Opinion: Ethanol craze boosts food prices, world hunger
WASHINGTON - The red-hot congressional love affair with the alternative fuel ethanol is starting to leave many supermarket customers feeling mighty blue these days as they pay inflated prices for grocery staples.

Even worse, it's likely to dramatically increase the cases of chronic hunger, malnutrition and starvation in the poverty-stricken nations of Africa and Southeast Asia in the months ahead.

With the prices of some food staples soaring upwards of 40 percent as more farmers plant corn for ethanol rather than human food and animal feed, many environmental groups are raising the specter of global food shortages of apocalyptic proportions.

'Great tragedies of history'

"We are witnessing the beginning of one of the great tragedies of history," said Lester R. Brown, president of the Earth Policy Institute and author of a new report on ethanol and its effect on food prices.

The increased amount of acreage devoted to growing corn for ethanol, he observed, means the U.S. will ultimately export less grain - further harming poor nations that rely heavily on food imports for their basic sustenance.

Brown projected that the 800 million human beings current living in hunger will rise to 1.2 billion by 2025.

"The United States, in a misguided effort to reduce its oil insecurity by converting grain into fuel for cars, is generating global food insecurity on a scale never seen before," he said.

"As a result, the world is facing the most severe food price inflation in history as grain and soybean prices climb to all-time highs," Brown said, noting that wheat trading on the Chicago Board of Trade on Dec. 17 pushed past the $10 per bushel for the first time ever, while a bushel of soybeans traded at a historic high of $13.42 on Jan. 11.

The rising commodity prices are driven by hefty federal subsidies for U.S.-produced ethanol and huge tariffs of some $1.50 per gallon on cheaper ethanol imports from Brazil.

The subsidies and tariffs have triggered a rush to invest in America's new biofuel industry. Dozens of new ethanol plants are popping up across the agricultural states of the Midwest like mushrooms after a spring rain.

Subsidies of $93 billion

A region that once produced much of American's food and sent its surpluses to feed the world's hungry now is producing grain for automotive fuel - the beneficiary of earmarks from the Capitol Hill friends of prairie farmers.

"Nearly $93 billion in subsidies will flow to ethanol and biodiesel producers by 2012," says Tom Tanton, a fellow in environment studies at San Francisco's Pacific Research Institute. The subsidies will cover about 50 to 65 percent of ethanol's market value alone - sticking taxpayers for a tab they will have to pay again at the gas station pump.

Ironically, ethanol delivers an energy punch about 30 percent lower than standard gasoline, so motorists will find their overall gas mileage plummeting even as they shell out more money.

Politicians are misguided when they paint biofuels as "the fuels of the future," said Rainforest Action Network Executive Director Michael Brune. Such fuels, he said, shouldn't emit more greenhouse gases than gasoline, degrade priceless ecosystems and force poor people off their land. He noted that giant agribusinesses like ADM and Cargill are clearing tropical rain forests in Indonesia and New Guinea to grow biofuels for export to advanced countries.

Given the huge campaign contributions to federal lawmakers from biofuel companies, his words almost surely will fall on deaf ears when they reach Capitol Hill.

David A. Ridenour is vice president of The National Center for Public Policy Research www.ncppr.org.

Copyright © The Billings Gazette, a division of Lee Enterprises.


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jaymes said 1 month ago
And diesel prices approaching $4 has nothing to do with grocery prices? David, keep sending those Islamic terrorist your money gallon by gallon.




none said 1 month ago
If Americans were not so greedy a culture , perhaps they could get rid of those un-needed gas hogs and use a vehicle that gets better gas mileage. For sure it will take an alignment of the stars to break Americans of thier bad habits with cars & gas hog 4x4,s. Just how much they want to pay for food & other necessities is the question. Some of us are stuck on fixed incomes with no public transportation , but these greedy people who must have it all,they dont care as long as they get thier gas & diesel for thier Hummers and SUV,s.




CDN said 1 month ago
Mr Jaymes, sorry to wreck your day, but most of our oil comes from Canada, Mexico, and other non-Islamic countries. There is a rumor that we even produce some here. But, never fear, those energy experts, our Congresscritters, know more then the Market. Now that they have decided the best sources for energy, $5 a gallon diesel will seem cheap, if you can find it. Thanks Max!




Locutus of Blog said 1 month ago
At least the farmers in this country are finally getting paid a living wage for the crops they raise. Hydrogen is the ultimate clean-energy fuel. If we can find a way to cheaply and efficiently mass-produce it the problem will be solved. Here's hoping.




flowergal said 1 month ago
This guy took out how many trees to write this? The last two paragraphs tell the story. none, are you LLP with a name change? Can you tell me with any degree of credible knowledge why I should be driving a pregnant roller skate on highways full of semi rigs hauling our nation's daily necessities? These minis ought to be getting 100 mpg for their size, so don't tell me how fuel efficient they are. Sincere concern calls for junking out all vehicles, selling it to China for their Mattel toy production, get a BLM horse, cart and pooper-scooper. My grandparents came here for a better life for me and I'm not about to waste it or trash their sacrifice.




melstone said 1 month ago
Nuclear power..... and to none, I'll keep my 4x4. Funny how on my way into town I sure see alot of people driving gas saver cars but guess who are the ones who are speeding? It's them! Go figure...




Dig Me Up & Ravage Me said 1 month ago
The National Center for Public Policy Research is just another nutjob outfit dedicated to keeping us hooked on oil, and "the Market" is manipulated every single day by those who CAN manipulate it. No matter what happens, no matter whether we stay addicted to oil or find any other fuel whatsoever, the average American is gonna get JACKED. By now we should be used to it.




klem said 1 month ago
Take the land out of CRP and let them grow crops if it is so lucritive.




none said 1 month ago
With attitudes like melstone & flowergal,s , there is little wonder why we have to pay $3.00 for a gallon of gas. What about the 4x4,s one sees upside down in the ditches on slick roads ?




tdl said 1 month ago
It was predictable that ethanol would raise the price of food. It is not the answer to our energy needs and only the Gorites believe that it is. People starving in this world but Gore and his followers encourage taking food production and turning it in to fuel to solve a problem that doesn't even exist. What happened to the ice ages? They melted from Global warming. A natural event that took place when there were no humans or industry. Man cannot cause nor can he prevent the ice ages or global warming.




jaymes said 1 month ago
For once I agree with Locutus. Rather see some rich American farmers than rich Islamic terrorist with nukes.




TAXED4U said 1 month ago
Simply amazing what can be accomplished when re-election driven congressmen get together with the envirowhackos. And the taxpayers pay. Pay for higher fuel costs. Pay to re-elect that congressman, that knows better. Pay at the grocery store. Truly educated environmentalists all over the world are aware of the "ethanol scam". Congressmen from every state are aware of the "ethanol scam". But re-elections and billions of dollars are going into the corporations building these plants and farmers selling subsidized corn at higher costs. Al Gore carbon credit companies are probably building some of these plants. They are just another con job that spreads the money around. It was your money. But, if that was not all hideous enough - I found out that in Mexico, they are tilling the blue agave plants under to plant more "profitable" ethanol products. Now, I don't mind paying a few extra tax dollars in taxes, or a little extra for my taco shells and all the beef and dairy products related to livestock feed costs, I don't mind the inefficient fuel - But when they start messing with the worlds capacity to produce good Tequila by wiping out the blue agave fields - Its time to take this fake environmentalism seriously!




Bushsucks said 1 month ago
TAXED4U: I am with you as we have agreed (On this one thing before) and I will say it again, the internal combustion engine was invented in 1930 (I think) 78 years later any No One has invented a better engine that runs on something other than Gas/Oil?




CDN said 1 month ago
Mr Bush*****,next time you want to rant, check your facts first. The internal combustion engine was invented in the 1800`sand is constantly being improved. Suppose your lack of knowledge is Bush`s fault too.




Bushsucks said 1 month ago
CDN: Sorry I did not look deep enough into my google search, but am I wrong? In 208 years there has not been a better invention?




Diogenes said 1 month ago
SOLUTION Let every one use the dyed gasoline that is "supposed" to be used in farm equipment only.




marion said 1 month ago
While you are worrying about world hunger give some thought to all of the taxpayer dollars going to get rid of agriculture producers in this country. Such things as wolves, mice being "protected" and water being diverted for city use rather than ag use, or the 10 million given for the ivory billed woodpecker, and stopping the dam needed by rice farmers. Our food supply is under a great deal more danger from environmentalists wanting absolute control than it is from ethanol.




notnek said 1 month ago
We should invite this David Redenour to eastern South Dakota. The ethanol plants produce by products.. Hint Hint David.. Pork chops $1.29 on sale poultry still cheap. What does this Idiot think happens to the corn after the alcohol is extracted.. And every gallon produced is a gallon we don't but from the Mideast with borrowed Chinese money... I suppose David thinks because of Ethanol it has caused the world wide shortage of wheat. Farmers have been getting shafted for years . Now with the prices up, guess what, fertilizer went through the roof, fuel and the price of crop insurance .. Oh the price of equipment and parts.. This Idiot should come on down and do some research on us country folks before writing garbage like this.




Here we go said 1 month ago
I'd much rather keep driving my gas-guzzling 4x4 than kill innocent people. How about you eco-hippies? Was this alternative energy push worth it?




flowergal said 1 month ago
none, What do 4WD vehicles in ditches have to do with fuel efficiency? You libs have trouble staying on track with the conversation. FYI, I've seen more teensy twit cars in ditches than 4WDs.




Michaelj said 1 month ago
Did anyone see the study that just came out that finds that the production of ethonal causes more CO2 than the production and burning of fossil fuels? We have enough coal and oil to last for at least another hundred years. Before then someone , in the private sector will have invented another fuel supply that will be cheap and efficient.




Osama Obama said 1 month ago
What is sad is the way the Ag Lobby is pushing for Ethanol only to line their pockets. Ethanol does not provide the gallon for gallon efficiency as bio diesel. Ethanol is not the solution. Honestly I do not understand why no one talks about how much we'd save by just driving a little bit slower on the road. I'm not saying drive 55 like Jimmy Carter but maybe we could take our feet off the pedals just a tad.




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