There is constant controversy regarding the use of land to grow crops for human consumption or for crops for biofuels production. There is disagreement on what should be done to solve the problem, what is causing it, and what should be and can be done about it. All the complexity and uncertainty regarding the issue is caused by the numerous impacts that can affect the price system.

 

In recent years, biofuel production has increased significantly. Commodities such as maize, sugarcane, and vegetable oil can be used as either food for the population, feed for animals, or as feedstock to produce biofuels. ‘For example, since 2006, a portion of land that was also formerly used to grow other crops in the United States is now used to grow corn for biofuels, and a larger share of corn is destined to ethanol production, reaching 25% in 2007. Second generation biofuels could potentially combine farming for food and fuel and moreover, electricity could be generated simultaneously, which could be beneficial for developing countries and rural areas in developed countries.’ As global demand increases for biofuels as a result of the increasing oil price and the desire to reduce oil dependency, there is also the problem of the potential destruction of natural habitats and the reduction of food crops for consumption as more and more land is used to grow crops for biofuel.  (Citation T-79)