This briefing paper reviews evidence of the impacts of the U.S. Renewable Fuel Standard (RFS) on food prices, with a focus on corn and soy, and presents new analysis on the impact of the RFS on U.S. livestock
The recent surge in world food prices is already creating havoc in poor countries, and worse is to come. Food riots are spreading across Africa, though many are unreported in the international press. Moreover, the surge in wheat, maize and rice prices seen on commodities markets have not yet fully percolated into the shops and stalls of the poor countries or the budgets of relief organizations. Nor has the budget crunch facing relief organizations such as the World Food Program, which must buy food in world markets, been fully felt.
Agriculture secre tary Edward T. Schafer is preparing to walk into a buzzsaw of criticism over American biofuels policy when he meets with world leaders to discuss the global food crisis next week. Mr Schafer took the offensive at a press conference on Thursday that discussed the food summit, planned for Rome. He said an analysis by the agriculture depart ment had determined that biofuel production was responsible for only 2 to 3 per cent of the increase in global food prices, while biofuels had reduced consumption of crude oil by a million barrels a day.
Government legislation that will require all gasoline sold in Canada to contain 5 percent ethanol by 2010 passed the House of Commons on Wednesday. The bill, which also calls for diesel to contain 2 percent renewable fuels by 2012, won the support of the main opposition Liberal Party but was opposed by two smaller parties that had voiced concern about food-crop production being diverted to fuel. However, the governing Conservatives and the Liberals have both backed the idea, arguing that only a small portion of food crops such as corn will be used to make the biofuel.
Agriculture Secretary Edward T. Schafer is preparing to walk into a buzzsaw of criticism over American biofuels policy when he meets with world leaders to discuss the global food crisis next week. Mr. Schafer took the offensive at a press conference on Thursday that discussed the food summit, planned for Rome. He said an analysis by the Agriculture Department had determined that biofuel production was responsible for only 2 to 3 percent of the increase in global food prices, while biofuels had reduced consumption of crude oil by a million barrels a day.
Global production of biofuels will rise rapidly over the next decade, helped by high government blending targets and subsidies, the OECD and the UN's FAO food agency said in a report published on Thursday. These rises will boost already soaring world agricultural commodities prices and reduce their availability for food and feed, the Organisation for Economic Co-operation and Development and the Food and Agriculture Organisation said in co-drafted report.
Food prices will remain high over the next decade even if they fall from current records, meaning millions more risk further hardship or hunger, the OECD and the UN's FAO food agency said in a report published on Thursday. Beyond stating the immediate need for humanitarian aid, the international bodies suggested wider deployment of genetically modified crops and a rethink of biofuel programmes that guzzle grain which could otherwise feed people and livestock.
Ahead of a global summit on the food crisis, the United Nations called on world leaders on Wednesday to agree to urgent measures to ease demand for grains and ease high food prices. A report by the Food and Agriculture Organisation of the United Nations suggested that countries might need to reconsider policies that encourage the production of ethanol and other biofuels. The report also suggested that the food summit in Rome, which will run from June 3 to 5, will give world leaders a chance to renew a war on hunger.,
A fund-driven surge in sugar prices at the start of 2008 has been wiped out as a huge glut of the sweetener reasserted its grip on the market, but growing demand for cane-based ethanol could fuel future price gains. Raw sugar futures powered out of the starting blocks of 2008 on heavy buying by index funds and soared 39 percent to peak at 15.07 cents a lb on March 3. Prices then slid under pressure from the surplus, and dipped below 10 cents on Friday. Raw sugar stood at 10.82 cents on the last trading day of 2007.
This article examines interactions among climate change, political-economic interventions and technical progress, focusing on the impacts of biofuels in the Amazon and Cerrado regions in Brazil.
<p>Some model experiments predict a large-scale substitution of Amazon forest by savannah-like vegetation by the end of the twenty-first century. Expanding global demands for biofuels and grains, positive feedbacks in the Amazon forest fire regime and drought may drive a faster process of forest degradation that could lead to a near-term forest dieback. Rising worldwide demands for biofuel and meat are creating powerful new incentives for agro-industrial expansion into Amazon forest regions. Forest fires, drought and logging increase susceptibility to further burning while deforestation and smoke can inhibit rainfall, exacerbating fire risk. If sea surface temperature anomalies (such as El Niño episodes) and associated Amazon droughts of the last decade continue into the future, approximately 55% of the forests of the Amazon will be cleared, logged, damaged by drought or burned over the next 20 years, emitting 15–26 Pg of carbon to the atmosphere. Several important trends could prevent a near-term dieback. As fire-sensitive investments accumulate in the landscape, property holders use less fire and invest more in fire control. Commodity markets are demanding higher environmental performance from farmers and cattle ranchers. Protected areas have been established in the pathway of expanding agricultural frontiers. Finally, emerging carbon market incentives for reductions in deforestation could support these trends.</p> <p><a href="http://rstb.royalsocietypublishing.org/content/363/1498/1737.short" target="_blank">Original Source</a></p>
