This report by the Farm Foundation notes the role of two persistent demand shocks---biofuels policies for corn, and soybean exports for China---as major driving forces behind rising commodity prices in recent months. Between 2005 and 2010 the number of acres required to satisfy biofuels and soybean demands rose 189% in the US. Such a dramatic increase in the number of acres required implies a decrease in the amount of available land to grow crops for global consumption. These increases in demand coupled with an ailing economy and climate change caused commodity prices to skyrocket in early 2011.
July 19, 2011
To view the report, click here.