Sustainable Ideas...

If you've noticed that food prices are rising every time you go to the grocery, you are not alone. It's happening around the world, resulting in serious shortages and social unrest. And some poeple are pointing the finger at something we heoped would solve some of our energy problems -- corn-based ethanol.

 The Wall Street Journal just reported on this inflation of food prices (Food Inflation, Riots Spark Worries for World Leaders by Bob Davis and Douglas Belkin). Robert Zoellick, president of the World Bank, said that 33 countries are at risk of social unrest and upheaval because of the rising price of food staples like rice and beans. Already, there have been protests over rising food prices in Haiti, Cameroon, and Sengal, among other countries.

And people aren’t rioting over a small increase: according to the Journal, food prices have increased 83% in the last three years. Why are food prices rising so fast? U.S. policies emphasize and encourage corn-based ethanol and other biofuels and are using what could be food into energy instead.

It costs more to transport food and pay for energy overall. Countries that are developing rapidly (China) have ever higher demands for food (and, I’m sure, there’s no reduction in the demand for food from countries that are already highly developed, like the U.S.).

So far, there’s no consensus about how to approach the problem. Zoellick asked rich countries to add more money to the UN World Food Program, but so far has only received commitments for half of the $500 million that he wanted.

Some other possible solutions:

1. Working together: The U.S., Britain, France, Canada, Germany, Italy, and Japan got together last week to discuss the food problem and possible solutions, including trade, technology, and short-term aid for poorer countries.

2. Import and export policies: Fifty eight countries have adjusted their own trade policies (reducing food import tariffs whileincreasing export tariffs) to try and move to self sufficiency.The problem: export barriers increase food prices even more.

3. Cutting deals: Countries are cutting deals with other countries to share land or maximize exports. So far, China is working with New Zealand, Ukraine with Libya, Brazil with Egypt, and Uganda is working with India.

4. More, better subsidies: Zoellick wants to target food subsidies to better provide food for those in need, like giving food in exchange for work, or targeting school programs so kids can bring food home with them.

5. Develop new biofuels that use grass or agricultural waste, not corn or food, to produce energy. Whatever the causes or solutions, this issue isn’t going away, so get in on the discussion at the WSJ poll: Are you surprised by the prices you're paying for food lately?Photo credit: the Farm Policy Blog where you can learn more about corn policy.