Corn Ethanol Boom in US, Hunger Worldwide

ethanol.jpg

If one of the world's largest exporters of corn converts part of its crop from food to fuel it will create food insecurity all over the world. Especially in poor nations that have undeveloped agricultural bases of their own.

That's the lesson that has emerged from America's corn ethanol policy.

Evidence Indonesia for the latest. It's facing sky-rocketing prices, food scarcity, bubbling riots and political unrest.

How come?

There's China's increasing demand for staple crops, of course. And the bad harvests in Argentina and Brazil haven't helped. But mainly it's this: The US Congress -- anxious to do something about America's energy boondoggle, anything -- dished out mandates and heavy taxpayer subsidies to America's agribusiness lobby to grow more corn for fuel in place of food.

Here's the effect, from the Financial Times:

Indonesia was yesterday forced to take emergency action to calm street protests over record soybean prices triggered by US farmers reducing the crop to grow more corn for biofuel.

Indonesia is hardly alone. There are empty shelves and foot-related unrest in parts of Venezuela, Mexico, Morocco, Mauritania, Senegal and Yemen. And there are warnings of hunger in Jamaica, Nepal, the Philippines and all over sub-Saharan Africa. Here's the sobering view from Sri Lanka:

Those buying commodities for fuel producers are competing directly with food processors for supplies of wheat, corn, soybean, sugarcane, and other key crops. Thus, the price of oil is setting the price of food simply because, if the fuel value of a commodity exceeds its value as food, it will be converted into fuel. The scale of the change is mind boggling...

The competition for grain between the world’s 800 million motorists, who want to maintain their mobility, and its two billion poorest people, who are simply trying to survive, is emerging as an epic issue.

The march is on for energy independence everywhere in America. In the halls of Congress. In the White House. On the campaign trail. Fantastic. But growing our way out of oil dependency by turning our corn fields into ethanol factories is turning out to be one of the worst possible ways to get there.

And just this week we learned from a new report of the Royal Society that while biofuels can displace oil, it doesn't mean they should. The study found that biofuels could have a more a damaging environmental impact than the dirtiest of fossil fuels.

All of this underscores the need to invest in clean, renewable energy. Solar and wind can deliver much more bang for the buck (a solar-powered US for the price of the Iraq war, in fact) without destabilizing the world's food supply.

Can't we just chalk up the corn ethanol mistake as an unintended consequence of an experiment gone wrong. Can't we just move on to a coherent, ethical energy policy? The EU seems to be moving in that direction.

And do we really have a choice?

With food prices in poor nations through the roof and a rising threat of global hunger, America's need to rethink its corn ethanol policy is as much a moral imperative as a practical one.