The policy of converting food into liquid fuel needs to end. Increased use of food for fuel has driven up the price of both - causing turmoil in the middle east and, consequently, higher global energy prices. By extension, it is a major force against global economic prosperity.
With huge inflation in food prices, the poorest people in the world find it increasingly difficult to feed themselves. The instability in the MENA (mid-east & north Africa) region can be traced to these increases in food prices: people who cannot afford to eat have nothing to lose. Those who think the importance of political freedom is paramount have never gone hungry - the primary freedoms are not those of political expression, but rather freedom from hunger and from the imminent threat of violence.
Meanwhile, in China, one of the largest populations in the world is unable to support its own food consumption. While speculation in food markets has doubtless exacerbated the problem, the outlook for global food supplies is dire enough by itself. Lester Brown, founder of the Worldwatch Institute, recently published an interesting article on the topic. You can find it
here.
In the US, where we produce about two-thirds of the global market for export, we waste 40% of our corn crop by turning it into ethanol. It's a net-negative energy process, meaning that it uses more energy to produce a gallon of ethanol than the fuel itself contains. Then, when we burn that ethanol, we only extract about one fourth of its energy capacity for useful work.
Originally, the production of corn ethanol was designed to improve US energy security. By reducing dependence on mid-east oil, we sought to reduce fuel prices. That backfired. Instead we helped precipitate two global food crises, threatening millions with starvation and destabilizing our oil supply. By eliminating this industry, we would help the world's poorest families, and help restore stability. Why don't we?