The Rush to Maximize Crop Production for Energy May Prove Bio-Fuelish

The Rush to Maximize Crop Production for Energy May Prove Bio-Fuelish

As economic and environmental impacts of crop-based biofuels are clarified, a case can be made that the costs of this approach to address rising energy demand might exceed the benefits, reports the Wildlife Management Institute. Even President George W. Bush, an ardent supporter of biofuels, acknowledged in a recent speech at the International Renewable Energy Conference that, "The high price of corn is beginning to affect the price of food."

While several factors, such as high oil prices and growing worldwide demand for food, are helping to push the price of crops to record levels, using a substantial portion of the corn harvest to produce ethanol is a significant part of the equation.

The current price for a bushel of corn is hovering around $5. As recently as 2006, a bushel of corn sold for under $2.

The diversion of crops from food to fuel production has substantial ecological impacts in addition to contributing to increased food costs. High crop prices provide economic incentive for producers to grow more crops. Increased crop production increases soil erosion, which increases water quality deteriorate. This domino effect is especially troublesome in the Midwest, the country's primary corn and soybean production area, which is drained by the Mississippi River. Along with soil, fertilizers are washed into the watershed contributing to the Gulf of Mexico's expanding "dead zone" ? a roughly 8,000 square-mile area within which fish, crabs and shrimp are unable to survive due to lack of oxygen.

Projections for the upcoming year leave little room for optimism. According to the Food and Agricultural Policy Research Institute (FAPRI), at the University of Missouri, "Plantings of 12 major crops are expected to increase 4 million acres in 2008, following a 3 million acre increase in 2007. Most new acres come from double-crop soybeans and wheat, reduced fallow ground and expiring contracts on Conservation Reserve Program [CRP] acres."

In addition to fish, terrestrial wildlife will also take a hit. As FAPRI noted, some of the additional ground being put into production was formerly enrolled in CRP. According to the U.S. Department of Agriculture (USDA), contracts on 2.6 million acres of land enrolled in CRP expired in 2007. Rather than be re-enrolled, most of this land will likely be put back into crop production in 2008. USDA reports that CRP contracts on another 1.3 million acres will expire in 2008. Loss of millions of acres of CRP will have substantial, negative impacts on grassland-dependent wildlife throughout much of the country.

High crop prices impact wildlife habitat in more ways than just through the loss of CRP acreage. At current crop price levels, there is substantial economic incentive for producers to convert wetlands and native prairies to crop production. With 7 million additional acres devoted to producing crops over a two-year period, converted wetlands and prairies are almost certainly going to be part of that additional acreage.

While biofuels undoubtedly will be part of the answer to growing energy demand, they just as obviously must be developed in a calculated and cost-efficient manner or more problems will be created than are solved. (pmr)

March 15, 2008