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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 billionA 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. Talk Back!Billingsgazette.com encourages readers to engage in civil conversation with their neighbors. Comments that are submitted go into a queue to be moderated and may take several hours to be reviewed. By submitting a comment, you are agreeing to the terms & conditions set out in our comment policy.If you have any problems with the new Talk Back! system, please email us. The comments below are from readers of billingsgazette.com and in no way represent the views of The Billings Gazette or Lee Enterprises.
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