One-third of the annual crop yield in the United States is placed into the production of alternative fuels such as corn-based ethanol. The development of this kind of energy, known as “biofuel,” is in large part the result of a desire in the U.S. to shift away from dependence on foreign oil and the harmful effects of traditional fuels on the environment. However, this approach has led to another kind of shift – a shift away from using agriculture strictly for food and toward using agriculture as an alternative source of energy – leaving many food policy experts concerned about the impact these technologies will have on food supply.
In 2007, Congress mandated a doubling of corn-based ethanol use, to 15 billion gallons a year by 2015. Further goals were put in place for the development of ethanol alternatives, called “biomass,” in an effort to alleviate the pressure placed on foodstuffs.
After the law went into effect, ethanol-producing plants began sprouting up all over the Midwestern United States and refiners in some regions were buying up as much corn ethanol as they could find. The law created a high demand for corn, driving up global prices for corn (as fuel or food). But in recent months, as this New York Times article argues, the dismal state of the economy, the plunge in oil and gasoline prices, and the relatively high price of corn are causing the industry to falter and stalling plans for the development of biomass.
What impact do you think fluctuations in the biofuel industry might have on the global food supply and global hunger?
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