Inter Lake editorial
The world is learning that there are consequences to an American determination to develop "alternative" energy.
But Americans feel good about ethanol, right? So good that ethanol production has been subsidized to the point where corn for energy has become more profitable than corn for food. Of course, that means less corn being sold for human consumption. And fields that have long produced other crops, such as wheat, are being converted to producing corn for biofuel use, further restricting food supplies.
The predictable result has been soaring worldwide food prices. The United Nations World Food Program is reporting a 40 percent increase in global food prices since the middle of last year.
There are, of course, other factors at play in the equation, such as a weakened U.S. dollar and higher energy costs that also translate to higher food production costs. But ethanol subsidies are at the center of the economic storm that has caused food riots in Egypt, Cameroon and Haiti.
As Time Magazine describes it, "biofuels have become the vanguard of the green-tech revolution, the trendy way for politicians and corporations to show they're serious about finding alternative sources of energy and in the process slowing global warming."
And the trend is likely to continue, considering it's an election year, and presidential candidates have been stumping in corn-fed states like Iowa and Ohio.
What's stunning is the loud, automatic and litigious opposition to petroleum energy development. "Dirty coal" has been demonized but somehow ethanol is blessedly subsidized.
Leftist environmental groups need to be held accountable for the economic consequences of their agendas, or at least they should be compelled to acknowledge those consequences.
Just as there was a movement that led to subsidies for biofuels (never mind that farmers are converting the carbon absorbing Amazonian rain forest into farmland), now there's a growing clamor for the United States to "do something" about global warming.
Guess what. There will be consequences. Carbon taxes, or cap and trade solutions, are essentially increases in the cost of doing business. And those taxes or cost increases, whether leveled on energy production or manufacturing, have a way of trickling down through all economic sectors, including food production.
In the end, the planet's poorest people will be hurt the worst. Whether they are trying to travel, to feed themselves or simply heat their homes, they are in for some stiff cost increases as the green agenda advances.
Rob
If there is a sticker on the gasoline pump that says E-10, and you are concerned about World Hunger, do not buy that gasoline. Go to a station that does not have E-10. Since April 9th of this year, Montana Wholesalers have a choice at the Rack to buy E-10 with it's 9 cent per gallon subsidy (-.05 cent Fed tax and -.04 cent Mt. Tax), or conventional Unleaded. Choose wisely.
Matthew Koehler
Right-leaning newspapers need to be held accountable too...Don't you think? Cliff Bradley Alternative Energy Resources Organization MT Public Radio commentary April 03, 2008 Donât Bash Farmers/Biofuels The news has been full of articles criticizing biofuelsâthat is ethanol and biodieselâfor driving up US food prices and for starving the worldâs poor. However, it seems to me that debates on biofuels canât be reduced to the simple black and white of food vs. fuel. The global agriculture and food economy is much to complex. Since this space only allows for 200 words, the rest of this commentary is available at: http://www.mtpr.net/commentaries/522
faithful reader
Wow. Interesting discussion. I learned something new this morning, Rob! Thanks.
accutrax
Sugarcane is the only plant that converts to ethanol efficiently enough to save on gross polution amounts. The other crops currently used simply are not efficient enough. Biofuel plants are turning rivers brown. A topic the currently gets conviently avoided by the extreme enviromentalists. As far as food production goes, if the farmers are paid enough to make farming economically viable, they can produce enough food to feed the world. It is often hard to get food to the worlds poorest do to corruption even if you want to Regards, Accutrax
mtboat
Matthew Koehler: Shut up.