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The collapse of the ethanol boom continues as a Pratt-based ethanol producer is the latest to file bankruptcy. Gateway Ethanol LLC has filed for Chapter 11 bankruptcy protection, estimating it owes between $50 million and $100 million. The filing comes weeks after Minneapolis-based Dougherty Funding LLC sought to have Gateway placed in emergency receivership to preserve any money being returned to creditors. It moved to foreclose on the company’s plant in May, saying Gateway defaulted on a $54.3 million loan used to build the facility. In a motion field in the U.S. District Court of Kansas in September, Dougherty noted...

HOUSTON, Aug. 7 -- The US Environmental Protection Agency has denied a request submitted by Texas Gov. Rick Perry for a 50% waiver from the federal renewable fuel standard (RFS) mandate for corn-based ethanol. The RFS, part of the Energy Independence and Security Act of 2007, requires increased national production of renewable biofuels to 36 billion gal/year by 2022 from 9 billion gal/year in 2008. Perry blamed increased demand for corn-based ethanol for contributing to escalating corn prices, which he said contributes to higher food prices and also higher costs for livestock feed (OGJ Online, July 22, 2008). EPA said...

Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian. The damning unpublished assessment is based on the most detailed analysis of the crisis so far, carried out by an internationally-respected economist at global financial body. The figure emphatically contradicts the US government's claims that plant-derived fuels contribute less than 3% to food-price rises. It will add to pressure on governments in Washington and across Europe, which have turned to plant-derived fuels to reduce emissions of greenhouse gases and reduce their dependence on...

Washington, D.C. (AHN) - The flood waters of Iowa has just started to recede, but America is already feeling the impact of the flood on corn prices which hit $8 a bushel on Monday. After preliminary reports of poor harvest for July delivery came out, corn price went up to $6 a bushel in late May and closed $7.325 a bushel on Monday at the Chicago Board of Trade. Corn contracts for later months even exceeded $8 and then lowered a bit at $8. Iowa, one of the largest corn and soybean producer in the U.S. was flooded by as...

UN food chief roasts 'overfed' West 3/06/2008 9:51:00 PM. UN food agency chief Jacques Diouf said today that billions of dollars are being wasted on feeding obese people in the West while millions starve around the world. "No one understands... how over-consumption by obese people in the world costs $20 billion each year," the head of the Food and Agriculture Organisation told an international summit on the food price crisis. On top of this, he added, there are "$100 billion in indirect costs resulting from premature deaths and associated diseases." Diouf also highlighted how an estimated $1.2 trillion was spent...

ROME — Resolving the global food crisis could cost as much as $30 billion a year and wealthier nations are doing little to help the developing world face the problem, United Nations officials said Tuesday. At a U.N. food summit attended by dozens of world leaders, Jacques Diouf, head of the U.N. Food and Agriculture Organization, opened the meeting by sharply criticizing wealthy nations who he said were cutting back on agriculture programs for the world’s poor and ignoring deforestation — while spending billions on carbon markets, subsidies for farmers and biofuel production. “The developing countries did in fact forge...

BIOFUELS – A MAN MADE DISASTER Unless you live as a hermit, you haven’t missed the rapid escalation of food prices caused by shortages in wheat, rice, corn and other grains. In many countries the price of rice has increased 70% since last year. As of February 2008, the cost of bakery flour had tripled from $14.60 per 100 lb bag in 2007 to $48.00 dollars per bag. U.S wheat production is at a 60 year low. Global wheat production is at a 30 year low. There have been riots in Haiti and Indonesia and threatened riots in other countries...

I don't want to alarm anybody, but maybe it's time for Americans to start stockpiling food. No, this is not a drill. You've seen the TV footage of food riots in parts of the developing world. Yes, they're a long way away from the U.S. But most foodstuffs operate in a global market. When the cost of wheat soars in Asia, it will do the same here. Reality: Food prices are already rising here much faster than the returns you are likely to get from keeping your money in a bank or money-market fund. And there are very good reasons...

To paraphrase the late, great William F. Buckley, Jr., someone must stand athwart the federal ethanol program yelling, “Stop!” The emergency brake should be pulled -- NOW -- before ethanol wreaks further havoc. Poor Haitians rioted last week outside Port-au-Prince’s presidential palace, forcing Prime Minister Jacques Edouard Alexis’ April 12 ouster. Haitians are enduring food prices 40 percent higher than last summer’s. Some have resorted to eating cookies made of salt, vegetable oil, and dirt. That’s right: Dirt cookies. Developing-world denizens are taking it to the streets with growling stomachs. In Bob Marley’s words, “A hungry man is an angry...

Farewell the age of reason, welcome the idiocracy. Only George Orwell could have invented - and named - the government's Renewable Transport Fuel Obligation (RTFO) that came into operation yesterday. It is the latest in a long line of measures intended to ease the conscience of the rich while keeping the poor miserable, in this case spectacularly so. The consequences of the RTFO have been much trumpeted on these pages. It says enough that one car tank of bio petrol needs as much grain as it takes to feed an African for a year, or that a reported one-third of...

Energy: The world's poor are learning what happens when government subsidizes the burning of food. It's time to end this madness and let the market decide if any biofuels make sense. For most Americans, the rising prices at the supermarket are definitely an annoyance, but hardly a threat to life and health. It's a different story in countries like Haiti, where food inflation has led to real hunger and, last week, to riots. News reports say the poorest Haitians are trying to get by on cookies made with dirt, vegetable oil and salt. Food riots also have roiled Egypt and...

U.S. Food Inflation Worst in 17 Years Associated Press NEW YORK -- Steve Tarpin can bake a graham cracker crust in his sleep, but explaining why the price for his Key lime pies went from $20 to $25 required mastering a thornier topic: global economics. He recently wrote a letter to his customers and posted it near the cash register listing the factors -- dairy prices driven higher by conglomerates buying up milk supplies, heat waves in Europe and California, demand from emerging markets and the weak dollar. The owner of Steve's Authentic Key Lime Pies in Brooklyn said he...

Dubai: The food price and supply situation is turning worse, and in some places is uglier than expected and could lead to domestic turmoil, including the "risk of war", a top official said. The food price situation has already claimed its first victim - the Haitian Prime Minister Jacques Edouard Alexis - who was forced to quit, and food ration lines in Bangladesh are becoming longer everyday with sporadic incidents, reflecting a near explosive situation due to hunger. "Food prices, if they go on like they are doing today... the consequences will be terrible," International Monetary Fund (IMF) managing director...

Pilgrim's Pride Corporation on Wednesday announced it will close a chicken processing complex and six of its 13 distribution centers in the United States. None of the impacted facilities are in Texas. Company officials said the action was in response to what they deemed a crisis facing the U.S. chicken industry from soaring feed-ingredient costs resulting from corn-based ethanol production."Our Company and industry are struggling to cope with unprecedented increases in feed-ingredient costs this year due largely to the U.S. government's ill-advised policy of providing generous federal subsidies to corn-based ethanol blenders," said Clint Rivers, president and chief executive officer....

Finally, the media are connecting the dots and realizing the push for alternative energy is taking a toll on the American economy. The Labor Department reported on February 20 that the Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January, matching December’s rise. One of the culprits behind the spike – increased food costs because corn is being used for ethanol. “Farmers are replacing wheat fields with corn to meet the demand for alternative fuel, but that means higher flour prices – and in one Pennsylvania pizza shop, more expensive pies,” NBC News correspondent Chris Jansing...

Environment: In 2005, America used 15% of its corn crop to replace just 2% of its gasoline. Two new studies say use of biofuels will leave the world a warmer and hungrier place.The law of unintended consequences has reared its ugly head once again, with a study published in the Feb. 7 issue of the journal Science. According to University of Minnesota ecologist and study co-author David Tilman, converting the grasslands of the U.S. to corn for ethanol releases excess CO2 emissions of 134 metric tons per hectare (equal to 2.47 acres). The reason is that plants, from grasses to...

Malthus may have been right after all, though two centuries early and a crank. Mankind is outrunning its food supplies. Hunger - if not yet famine - is a looming danger for a long list of countries that are both poor and heavily reliant on farm imports, according to the Food Outlook of the UN Food and Agriculture Organisation (FAO). The farm crunch has been creeping up on the world for 20 years. Food output has risen at 1.3pc a year: the number of mouths at 1.35pc. What has abruptly changed is the twin revolution of biofuel politics and Asia's...

‘Buy Feed Corn: They’re about to stop making it…’ F. William Engdahl July 26 2007 That bowl of Kellogg’s Cornflakes on the breakfast table, or the portion of pasta or corn tortillas, cheese or meat on the table is going to rise in price over the coming months as sure as the sun rises in the East. Welcome ladies and gentlemen to the new world food price shock, conveniently timed to accompany our current world oil price shock. Curiously it’s ominously similar in many respects to the early 1970’s when prices for oil and food both exploded by several hundred...