Corn . .. fuel . .. fire ! U . S . corn subsidies promote Amazon deforestation Amazon deforestation and fires are being aggravated by US farm subsidies , claims STRI ’ s ( Smithsonian Tropical Research Institute ) staff scientist William Laurance . by Smithsonian Tropial Research Institute - Thursday , 10 January 2008 According to Laurance , whose findings are reported this week in Science ( December 14 ) , a recent spike in Amazonian fires is being promoted by massive US subsidies that promote American corn production for ethanol . The ethanol is being blended with gasoline as an automobile fuel . " American taxpayers are spending $ 11 billion a year to subsidize corn producers — and this is having some surprising global consequences , " said Laurance . The US is the world ' s leading producer of soy , but many American soy farmers are shifting to corn to qualify for the government subsidies . Since 2006 , US corn production rose 19 % while soy farming fell by 15 %. The drop - off in US soy has helped to drive a major increase in global soy prices , which have nearly doubled in the last 14 months . In Brazil , the world ' s second - largest soy producer , high soy prices are having a serious impact on the Amazon rainforest and tropical savannas . " Amazon fires and forest destruction have spiked over the last several months , especially in the main soy - producing states in Brazil , " said Laurance . " Just about everyone there attributes this to rising soy and beef prices . " High soy prices affect the Amazon in several ways . Some forests are cleared for soy farms . Farmers also buy and convert many cattle ranches into soy farms , effectively pushing the ranchers further into the Amazonian frontier . Finally , wealthy soy farmers are lobbying for major new Amazon highways to transport their soybeans to market , and this is increasing access to forests for loggers and land speculators . Laurance emphasized that he was not the first person to suggest that US corn subsidies could indirectly harm the Amazon . " But now we ' re seeing that these predictions - first made last summer - are being borne out . The evidence of a corn connection to the Amazon is circumstantial , but it ' s about as close as you ever get to a smoking gun . " . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................... This email should only be sent to those who have asked to receive it . If you would like to unsubscribe please go to http : / / enviro . org . au / enewsUnsubscribe . asp