"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," says Lester Brown, president of the Earth Policy Institute (EPI), an environmental think tank in Washington. World population growth will require food for an additional 70 million people this year, the EPI said in a report last week.
Driven mostly by population growth, world grain consumption rose an average of 21 million tons per year from 1990 to 2005, the US Department of Agriculture reported this month. Demand for grain to make ethanol soared by 27 million tons last year, USDA reported.
"Putting [corn-ethanol] land back into food use would have a profound effect on the price of corn," says Bruce Babcock, an economist at Iowa State University's Food and Agricultural Policy Research Institute. This year, he estimates, the US will produce about 8 billion gallons of ethanol. To do that, nearly one-fifth of the 80 million acres now devoted to corn will go to make ethanol.
That demand is helping to boost feed prices for cattle, as well as for crops like peas and beans because less land is devoted to growing them, he says.
In a counterpoint study last month by corn growers and the biofuels industry, higher corn prices were found to be only a small element in rising food costs overall â€“ although higher energy costs for fuel to transport crops and grow them were a larger factor.