Biofuels cause food crisis in poor countries because people do not have money to buy grain. This year 25% of our corn crop is going for ethanol, and 20% was detroyed by floods, and now we are seeing record prices for grains.
Farmers planted extra corn due to high prices using land normally resewrve for other grains like wheat and oats. The problem is that corn is sensitive to standing water and entire fields were wiped out by one of the worst floods in history.
The reason corn was planted was that ethanol production did cause an increase in price. It is estimated that high fuel costs such as diesel oil contribute 15% to price increase, while ethanol production 75%. Make fuel out of food is bad for the world, and I have predicted empty grocery store shelves in the future.
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