Unless 100% of bio-fuel comes from non-food sources they need to stop this madness before food prices go any higher than they already have.
40% of the 2011 US corn crop is going to ethanol production when the amount of corn planted has dropped by over 1 million acres since 2007 and corn yields have dropped because of droughts.
The government inflation rate avoids factoring in food prices so they can hide the fact that prices have spiked in the last 3 years on any food product that involves corn, like beef, milk, chicken, eggs and thousands of other food stuffs.
President Barack Obama is citing energy security as the rationale behind more investments into biofuel blends.
The Obama administration has announced a major initiative to expand biofuel production, pumping much needed capital into the sector.
A coordinated program between the U.S. Departments of Agriculture, Energy and Navy will invest up to US$510 million over the next three years to support biofuels for U.S. commercial and military transportation.
“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” said President Obama. Fuel supplies are intended for use in air and marine transportation, and will be blended with existing fuels.
“But supporting biofuels cannot be the role of government alone. That’s why we’re partnering with the private sector to speed development of next-generation biofuels that will help us continue to take steps towards energy independence and strengthen communities across our country,” Obama added.
The cost sharing requirements are that companies match government funding dollar for dollar. The question is whether the investment will be enough of a catalyst to actually drive biofuel development much further beyond where it stands today.
