The price skyrocketed because of some spectacular crop failures, price of oil, etc. Biofuels contributed but do not explain the price changes we saw in 2007-200

The price skyrocketed because of some spectacular crop failures, price of oil, etc. Biofuels contributed but do not explain the price changes we saw in 2007-2008 [2]. That is more industry FUD. A further problem is ethanol and corn. Corn is subsidized by the tax payer, so naturally everyone wants to use it for everything, including biofuel. Unfortunately its incredibly inefficient to turn into biofuel [1]. Its actually incredibly inefficient period - but humans don't like to eat palm oil. So yes you are correct in worrying about biofuels affecting agricultural prices: low yield corn was affected by its use as a biofuel. This is why I argue for biodiesel from high yield crops that can produce 700 gallons per acre, instead of corn's 17 gallons per acre. [1] http://www.progressivefuelslimited.com/PDF/PFL-Biodiesel%20Crops%20Chart.pdf http://www.progressivefuelslimited.com/PDF/PFL-Biodiesel%20C... [2] http://www.federalreserve.gov/pubs/ifdp/2009/967/ifdp967.pdf http://www.federalreserve.gov/pubs/ifdp/2009/967/ifdp967.pdf