Rise in grain prices crimps U.S. food donations.

• Author: Hanson, Jessica
• Position: EYE ON EARTH

From Illinois corn to Kansas wheat, U.S. grain crops are undergoing their fastest price hike since 1990. The jump in prices is being felt not only at the grocery store, but also in international food policy, as the costs of corn, cooking oil, and other items commonly purchased for U.S. food aid programs have increased sharply. The United States is the largest single donor of food worldwide, but the volume of aid provided through its leading assistance program, Food for Peace, dropped by more than half between 2000 and 2007, partly in response to a 35-percent increase in the cost of agricultural commodities in the last two years.

According to the Wall Street Journal, reasons for the price climb include growing demand for grain in China, Russia, Latin America, and South America, which has reduced global stockpiles, as well as increased interest in the use of corn and other food crops to produce biofuels, particularly ethanol. At the same time, rising transportation costs have made it more expensive to ship U.S. agricultural products to countries in need, pushing the price of food aid upward.

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National policies are also a factor. The United...