Food prices increase as ethanol competes for corn and soy

June 26, 2007
Contact: Marilyn Borchardt at 510-654-4400 ext 234

Letter to the Editor

Victor Davis Hanson's recent column titled The Impending Food Fight illustrates the need to study the potential impacts of the current agro-fuels mania. As Mr. Hanson noted, food prices are rising at the rate of 10 percent per year. Increases in food prices will most heavily burden low-income families, many of whom are already struggling to avoid hunger as reflected in the dramatic increase in clients to food banks and soup kitchens.

The environmental, economic, and social health of communities can best be protected by keeping ethanol production local. Large plants require transportation over long distances and concentrate smokestack pollution. In April 2007, the Environmental Protection Agency relaxed air safety standards for ethanol plants. If ethanol producers, particularly large corporate-owned plants, are able to take advantage of weakened pollution regulations, any environmental benefits of ethanol production will be lost.

Once bulky fiber replaces corn and soy as the ethanol source, transportation and production costs could easily use as much energy as it produces. In the long run, it will be more economically and environmentally sound to keep ethanol production local to benefit farmers and rural communities close to the source of cellulosic fiber.

Hamza Hasan and Marilyn Borchardt
Food First/Institute for Food & Development Policy