Biofuels and food

Renewable energy is largely rural energy. Biomass, including but not limited to biofuels, depends on farm and forest feedstocks. USDA Rural Development has therefore emerged as a leading funding agency for the commercialization of emerging renewable energy technologies. For rural America, this is an enormous opportunity for wealth creation. The increases in food prices we are experiencing today are driven largely by surging demand from Eastern Europe, China, India, and other countries that are experiencing rapid economic growth, rising living standards, and a rapid upgrading of dietary standards. Net farm income-already at a record high-is projected to rise significantly, while direct government payments are expected to decline. Grain prices are expected to experience a short, near-term spike, then decline as new production comes online.