The debate over corn derived ethanol got another nod as the UN put pressure on the US to stop turning food into fuel. Hat tip to Arctic Patriot for the source. http://edition.cnn.com/2012/08/09/business/un-us-ethanol/index.html
A fuel that take more energy to create than it produces. Corn derived ethanol is a huge loser in the economy department and without government subsidies and tax breaks would not stand on its own in the free market.
The idea was that "eventually" corn derived ethanol would be replaced by cellulose derived ethanol. The law was written to push ethanol into cellulose derived ethanol. Unfortunately the engineering hasn't caught up to the science (cellulase enzyme has been successfully mapped down to the genetic level, but it has taken longer than thought to turn an enzyme derived from the gut bacteria of termites into a marketable product). http://www.ogj.com/articles/2012/06/afpm-wspa-sue-epa-over-cellulosic-ethanol-requirements0.html
But is this really a food crisis? No. This is a currency crisis. Over the last few years the major currencies of the world have lost ground in comparison to commodities as the consequences of fiscal insanity are becoming ever more clear as bailout after bailout makes the worlds cash resources increasingly worth less. Eventually the space between those two words may disappear for a time.
The laws of "supply and demand" can't be ignored. Create more cash and prices go up. Add in a drought to make commodities even more rare against the glut of cash and you have a man made "food crisis" that is nothing of the sort.
Call it an "energy crisis" when the dollar falls in value against a barrel of crude and yet the UN doesn't pressure Venezuela to produce more, and the UN tells us, "suck it up you fat cat Americans." Now that our export is drying up the UN calls on us to change our policies to support their agenda. I don't really care about the hypocrisy of it all except to point it out.
No amount of corn taken out of the ethanol pipeline and put back into the food pipeline is going to fix the financial mess that is the root cause of spiraling commodity prices.