Global Food Prices

wherefore Did Global Food Prices Rise? 1. Farmers in the joined States and in Europe usefulness from government policies to promote the production of ethyl alcohol because they receive government subsidies to garden truck crops that crumb be turned into biofuels and it grants the farmers an incentive to determine crops much(prenominal) as corn and soybeans. However, this policy injurys unconnected producers of these foreign crops. Since U. S. nd European farmers lose subsidies, they have lower costs than the foreign farmers and the foreign farmers whitethorn struggle to compete. The high tariffs on imported swag cane in the United States and Europe good the American and European farmers of corn and soybeans because since the price of sugar cane is higher(prenominal), sugar cane farmers cannot compete with the new(prenominal) farmers. These farmers who produce crops such as soybeans and corn employ to create biofuel benefit because the cost of producing these crops is lower than sugar.Thus, the American and European farmers of corn and soybeans benefit, while farmers of sugar cane, such as Brazilian farmers, are harmed because they cannot compete in the American and European market for biofuel because their prices are higher due to the tariffs. The environment is also harmed because the biofuel made aside of sugar cane burns unused than ethanol made of corn or soybeans. 2. With the risk of the fare bring home the bacon in poorer nations being dramatically reduced, in the lead to malnourishment and starvation, rich countries should assist in preventing this phenomenon from happening.Rich countries could serve up lower the pabulum prices by not grown subsidies to farmers who produce crops that are employ to produce biofuels. Since the premium gives farmers incentives to farm crops such as corn and soybeans, it takes away(predicate) resources and land to produce other crops used principally for consumption. If countries stop giving subs idies for crops used to produce ethanol, more than energy and resources can therefore be used to farm crops used primarily for food, such as wheat.If more food crops are produced, the price leave alone go down for these crops due to the theory of supply and demand, since there ordain be more food for consumption. By eliminating subsidies on crops such as soybeans and corn, wealthier nations can help increase the food supply, which will benefit poorer nations. 3. In terms of creating a healthier environment, the governments should stay fresh to distri ande subsidies to farmers of crops used to create ethanol because it will expedite the transition from gasoline to ethanol, thus creating cleaner energy sources faster.However, from a free trade standpoint, the subsidies give foreign producers of similar or substitute crops to be at a disadvantage because the subsidies favor domesticated farmers through decreasing costs. I think the scoop out policy to implement to lower CO2 emiss ions without but inhibiting trade would be to keep the subsidies at the aim they currently are at because cleaning up the environment is a serious and important concern, but it should not be done if it causes significant harm to free trade and market systems.