Food vs. fuel

Food versus fuel is the dilemma regarding the risk of diverting farmland or crops for biofuels production to the detriment of the food supply. The biofuel and food price debate involves wide-ranging views, and is a long-standing, controversial one in the literature. There is disagreement about the significance of the issue, what is causing it, and what can or should be done to remedy the situation. This complexity and uncertainty is due to the large number of impacts and feedback loops that can positively or negatively affect the price system. Moreover, the relative strengths of these positive and negative impacts vary in the short and long terms, and involve delayed effects. The academic side of the debate is also blurred by the use of different economic models and competing forms of statistical analysis. Biofuel production has increased in recent years. Some commodities like maize (corn), sugar cane or vegetable oil can be used either as food, feed, or to make biofuels. For example, since 2006, a portion of land that was also formerly used to grow food crops in the United States is now used to grow corn for biofuels, and a larger share of corn is destined for ethanol production, reaching 25% in 2007. Oil price increases since 2003, the desire to reduce oil dependency, and the need to reduce greenhouse gas emissions from transportation, have together increased global demand for biofuels. Increased demand tends to improve financial returns on production, making biofuel more profitable, and so more attractive, than food production. This, in turn, leads to greater resource inputs to biofuel production, with correspondingly reduced resources put towards production of food. Global food security issues may result from such economic disincentives to large-scale agricultural food production. There is, in addition, potential for the destruction of habitats with increasing pressure to convert land use to agriculture, for the production of biofuel.