Ariver ... almost certainly there is increased competition for land between 'ethanol' and 'food' crops but make no mistake, whether subsidies exist or not, with a hyperinflating oil price, food prices would have to rise as at some oil price it is always viable to burn food for fuel. If you took away the ethanol subsidies and oil went to $130/barrel next week there would still be incentive for biofuel manufacturers to turn food into fuel particularly where there is no domestic oil industry.
The problem is rising oil prices moreso than it is biofuels. The world is running short of energy, food is energy ... I'm sure we'll be equally as shocked when they start using more wood because coal prices hyperinflate. ENERGY rules the world ...
