Biofuels are organic produced or food waste crops, many suppliers are using crops in the production of biofuel as it is also a main source for people consumption and for livestock. Nowadays, the process of rising prices of crops (Agriculture commodities) has a big effect in rising prices in the market due to high demand of biofuel, and recently the increasing demands of grains to make biofuel has exceeded the supply. Driving prices to up for crops led to increase on the prices of meat and eggs, and Farmers need big land for production because the high demand that they can't face it. Many obstacles are facing USA such as in importing from Brazil and Ukraine which are the good land for crops due to transportations. Government subside the biofuels to make sure it is profitable, so any extra will be used to make more biofuel instead of increasing or decreasing oil prices.
The main problem that the author is trying to explain is relationship of growing demand of oil and the use of grains to make biofuels, increase in demanding of corps for livestock, and human consumption with decreasing of production from some grain which led the demand exceeded the supply and how it affected the prices to be high on the market in the same time of facing obstacles in importing from other countries. In economic view, rising demand of grains as main source for biofuel has a big effect on driven up the prices of grains on society as its facing problem in supplying due to people consumption and livestock.
General comprehension questions:
What is “agflation”?
Agflation term is a combination of agriculture and inflation, where inflation led by increasing in agricultural commodities prices, and in other way it can be the increasing in food prices as a consequence of increased human consumption and the energy utilization as an alternative source.
What is the major problem facing the market for crops?
The major problems in