Why 25% of your income could soon go on food – MoneyWeek

TheOECDhasjoinedthegrowingchorusofvoicesquestioningtheexpansionofbiofuelswiththepublicationofareportthatsaystherushtopromotethesefuelsispushingupfoodpricesanddamagingtheenvironment。

AJulyreportfromtheUNFoodandAgricultureOrganisationsaidmuchthesamething。

TheBushadministration’ssubsidiesforcorn-basedethanolhavealreadydivertedmuchoftheUScropfromfoodtofuelproduction,saidMartinHutchinsononBreakingviews。

Butthereareotherreasonsforrisingfoodprices。

Whencornpricesroseearlythisyear,theMexicangovernmentputapriceceilingontheirfoodstaple,tortillas。

Suchpricecontrols,commoninpoorcountries,“stuntthedevelopmentofdomesticagriculture”。

Richcountries,suchastheUS,EuropeandJapan,makethingsworsewithprotectionisttradebarriersthatblockcommodityimportsfromcountriesthat“couldrunbiggersurpluses”。

Andwe’renotjusttalkingaboutfoodimports。