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Abstract
The increasing use of food commodities for biofuel production may intensify the
competition for arable land. To test this hypothesis we analyze the effects of crude oil
prices on prices, areas and quantities of selected food commodities empirically. On the
world level the crude oil price Granger causes an increasing area use for the production
of maize, soybean oil, sugar and wheat. For the U.S., we find that the maize price is
the key variable influencing the total area used for cereal production. In Indonesia and
Malaysia the palm oil price has effects on the cultivated area for rice.