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Originally Posted by Aedolaws
This crisis, deepened my bio fuel boom, will eventually give way to onomies will go to the rescue of poor countries and their biggest contribution will come in the form of technology revealing and training. Thus, while short term we are heading towards a major world crisis, 10 years down the road it should be back to normal, 30 years down the road the world will produce more food percapita than ever before in history.
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The problem is, and it's a much debated problem, that there is only a limited amount of arable land available. Even if the production intensifies when the demand grows, and even when new land is made available (at the cost of nature, such as rainforests). With this limited amount of land, the food- and biosector will have to compete with eachother for land if they want to meet the increasing demands of the market. The fuel market is known for it's continuously increasing demands and skyrocketing prices. If we become more and more dependant on biofuels then the prices will go up. The financial insentives to produce wheat for the foodmarket will decrease when the demand for biofuels increase. Thus more arable land will be used for fuel production instead of food production. Meaning that the crisis could actually intensify when the biofuel market grows.
Investments in intensified use of arable land do not have to result in more and cheaper food becoming available, if we also continue investing in using our food as fuel.