IMF Finally Figures It Out: Biofuel Policies Increase Food Prices

Hmmm. Who else is NOT surprised that turning food into fuel means higher food prices? Well, DUH! Wake up and smell the coffee, IMF.

Naturally, rising food prices hit the poor of the world the hardest.

I give you a quote from the IMF's recent seminar:

Commitments by members of the Organization for Economic Cooperation and Development (OECD) to reduce carbon emissions through alternative fuels development, while well meaning, have exacerbated the global food crisis and contributed to world-wide water shortages, said Nestle chief executive Peter Brabeck-Letmathe.

The resulting drop in agricultural productivity has led to price increases, he said. "Water scarcity will be the most constraining element," to additional production, he predicted. Replacing fuel with biofuel is "a very, very bad idea."

Replacing even 6 percent of total fuel usage with biofuel would require doubling agricultural production to maintain current output. "Where are you going to get the land and the water for this? This is irresponsible policy," Brabeck-Letmathe said. If the US alone would reverse its policy to replace fuel with biofuels, food prices would stabilize, he stated.