corn

A new report released by Oxfam has blamed the use of biofuels for pushing 30 million people around the world into poverty, while doing very little to fight global warming.

he worst flooding in the U.S. Midwest in 15 years sent fresh shocks to global markets and consumers as corn prices hit record highs on devastating crop losses in the heart of the world's top grain exporter.

-Chris Cappuccilli

Bob Dinneen, President and CEO, Renewable Fuels Assocation, is interviewed about criticisms that biofuels, such as ethanol, are driving up world food prices. He also addresses industry efforts to shift to cellulosic ethanol and to create a wider US ethanol fueling infrastructure.

This could spell big trouble! 8 basic items that we often take for granted are getting expensive and scarce all at once:

1) Corn

2) Oil

3) Dirt

4) Gas

5) Water

6) Electricity

7) Rice

8) Metal

I'm the first to admit that the current round of ethanol is not perfect. The rising demand for ethanol has put more land under cultivation, increased water shortages, and increased fertilizer and pesticide use. For all that, corn isn't really a great way to create ethanol, only producing 1.3 units of energy for every 1 unit put into its creation.

However, it is NOT responsible for the 40% increase in food prices over the last few years. It might seem like an easy target, but let's start with some logic, and then move into the solid figures.

Not all biofuels are created equal, as the chart above illustrates (click the image to see full size). It’s one of the best depictions I’ve seen of how each biofuel feedstock has completely different impacts on overall greenhouse gas emissions, water and pesticide use, and the energy required to produce the fuel.

Senator Grassley rebuts the argument that ethanol and corn farmers are to blame for rising food prices. He says increased oil prices play a role.

Washington-based outdoor company REI is using new biodegradable gift cards made by NatureWorks. The gift cards are made from PLA which is a corn-based bio-plastic.

Genetically modified crops are shown to lead to less herbicide runoff, but there are tradeoff's.

A fifth of the US corn crop is now used to brew ethanol for motor fuel, and as farmers have planted more corn, they have cut acreage of other crops, particularly soybeans. End result cooking oil shortage and wheat shortages.

"Mother Nature's Son," Sir Paul McCartney, recently expressed his disappointment with environmental NGOs for not putting greater emphasis on reducing meat consumption -- along with driving less and replacing standard light bulbs with CFLs -- as ways to fight climate change.

Oil prices and food prices are going to rise. The only choice we have is between two separate evils, not evil or no evil

Currently, the average price for a gallon of E85 (85% ethanol, 15% gasoline) is $2.67. That’s amazing if you think about it, since a gallon of ethanol requires about 16 lbs. of corn to produce.

Richard Lobb, Coalition for Balanced Food and Fuel Policy, is interviewed about a study that finds federal ethanol subsidies are contributing to rising food prices.

Despite intense debate surrounding the growing global food crises, the European Union today defended expanding the use of biofuels in all 27 member countries. Part of the EU’s climate change package, the current proposal sets a target of meeting 10% of transportation fuel with biofuels by 2020.