Title: Why Are Food Prices Rising - Understanding the Effect of Droughts
Headings: Why Are Food Prices Rising – Understanding the Effect of Droughts
Why Are Food Prices Rising – Understanding the Effect of Droughts
The Economic Impact of Droughts
How Droughts Affect Food Prices
Corn and Grain Dependence
Other Factors That Contribute to Rising Food Prices
Bio-Energy
Global Economic Growth and Food Prices
What Higher Food Prices Will Mean
Final Word

Content: bio-energy and the rapid economic growth of developing countries. Bio-Energy
In 2005, Congress placed requirements on gasoline refiners and importers to increase the use of ethanol in fuel. Ethanol is a crop-based gasoline substitute that is usually created from corn, although it can be made from the sugars of nearly any crop. The 2005 mandate and the 2007 Energy Independence and Security Act mean that more of our national corn crop is diverted to fuel rather than food or livestock feed. This is done in the hopes of eliminating the United States’ dependence on foreign oil. Part of this push for bio-fuel came from agricultural lobbyists, who were hoping to increase the market for corn. What it means is that 40% of the U.S. corn crop now goes to ethanol production, rather than to food production. This is part of the reason you have already seen a steady increase in food prices prior to this year’s drought. Corn is used in everything from cereals, to sodas, to cooking oils, to bread, to yogurt, to salad dressings, and much more – not to mention its important role in feeding livestock. With a major share of the U.S. corn crop being promised to the bio-fuel industry, there is less available for our foodstuffs.