Biofuels, made from agricultural crops, are an alternative to fossil fuels and one potential way to address increased global energy demands sustainably. Oil prices, environmental and energy security concerns, as well as government policies, determine how much biofuel is produced and used.
However, the critical question is food-versus-fuel: How do we balance the need to nourish people at affordable prices with the need to keep our vehicles and our economy going? Without careful public consideration and dialogue between all parties involved, distortionary government policies may upset this balance and exacerbate problems when crop supplies are tight.
- Biofuels can bring capital investment to agriculture and boost economic development in farm communities. However, the production of biofuels from food crops should be balanced against the need to nourish a growing global population.
- We favor market-driven policies, not inflexible mandates, tariffs and subsidies. These kinds of distortionary measures risk exposing consumers to higher food prices if too much of the food and feed supply is diverted to energy production during times of poor harvests and short supplies.
- At the same time, we support dialogue among governments, farmers, food manufacturers and the public to consider ways to balance the need for renewable energy with the importance of maintaining a secure food and feed supply.
- We offer biofuels from a variety of renewable resources, including corn, soybeans, sugar cane, palm oil and biogas. We produce ethanol and biodiesel in the U.S. and the EU, ethanol in Brazil and biodiesel in Argentina.