1. Department of Economics Food and Fuel: The Debate over Biofuels Chad Hart chart@iastate.edu 515-294-9911 Ames Morning Rotary Ames, Iowa August 6, 2008

2. Department of Economics Change in Food Price Indexes, 2005-2009 Sources: Bureau of Labor Statistics and USDA-Economic Research Service ItemFinalFinalFinalForecastForecast 200520062007 2008 2009 Consumer price indexesPercent change All food2.42.44.04.5 to 5.54.0 to 5.0 Food away from home3.13.13.63.5 to 4.54.0 to 5.0 Food at home1.91.74.25.0 to 6.04.0 to 5.0 Meats, poultry, and fish2.40.83.82.0 to 3.05.0 to 6.0 Eggs-13.74.929.213.5 to 14.52.5 to 3.5 Dairy products1.2-0.67.47.0 to 8.04.0 to 5.0 Fats and oils-0.10.22.911.5 to 12.53.0 to 4.0 Fruits and vegetables3.74.83.84.5 to 5.53.5 to 4.5 Sugar and sweets1.23.83.14.5 to 5.53.0 to 4.0 Cereals and bakery products1.51.84.49.0 to 10.03.5 to 4.5 Nonalcoholic beverages2.92.04.13.5 to 4.53.0 to 4.0 Other foods1.61.41.83.5 to 4.53.0 to 4.0

3. Department of Economics The U.S. Food Dollar Source: USDA-Economic Research Service, 2008

4. Department of Economics Farm to Retail Food Price Spread FoodFarm Value Share of Retail Food Price FoodFarm Value Share of Retail Food Price Eggs53Canned Corn22 Beef49Sugar27 Chicken48Wheat Flour19 Milk34Bread5 Pork31Corn Flakes4 Orange Juice33Corn Syrup3 Source: USDA-Economic Research Service, 2001

5. Department of Economics U.S. Ethanol Production Source: Renewable Fuels Association

6. Department of Economics Corn Prices Source: CBOT

7. Department of Economics Crude Oil Prices Source: U.S. Dept. of Energy, Energy Information Administration

8. Department of Economics Population 2008 2020 2050 (billion) World6.678World7.601World9.393 China1.330China1.431India1.808 India1.148India1.362China1.424 U.S.0.304U.S.0.336U.S.0.420 Indonesia0.238Indonesia0.268Nigeria0.357 Brazil0.192Brazil0.212Indonesia0.313 Pakistan0.168Pakistan0.204Bangladesh0.280 Bangladesh0.154Bangladesh0.190Pakistan0.278 Russia0.141Nigeria0.184Brazil0.228 Nigeria0.138Russia0.132Congo0.189 Source: U.S. Bureau of the Census, International Data Base

9. Department of Economics Real GDP Sources: International Financial Statistics, Global Insight

10. Department of Economics Countries Pursuing Biofuels  US  Brazil  Argentina  Colombia  Paraguay  Canada  Uruguay  Mexico  Thailand  New Zealand  South Africa  South Korea  Philippines  Indonesia  Pakistan  China  India  Malaysia  Australia  Japan  EU  Russia  Not a complete list

11. Department of Economics List of Reasons  Long run trends in agricultural production and usage  Global demand for biofuels  Reduced production in some areas of the world (droughts, floods, etc.)  Weaker U.S. dollar  Higher energy prices  Increased cost of agricultural and food production  Protectionist policies adopted by some countries