Simon Johnson, economic counselor at the International Monetary Fund (IMF) and Director of the IMF Research Department, discusses some issues related to biofuels and recent food price increases, in the IMF quarterly magazine, “Finance and Development”. The production of biofuels using food-based feed stocks (such as ethanol from corn) is considered a major cause for the increase in food prices. Biofuels policy in developed countries is seen as a major driver in recent “food price shocks”. This is said to be in the form of prohibitive tariffs and production subsidies. Adverse impacts would be most felt by the poor urban/rural sectors in low income countries that import food. Despite these negative effects, some “silver linings” are also seen. The Biopact website summarizes these potentially positive effects in the form of (1) direct benefits for farmers in low-income countries and (2) potential policy space for removing agricultural subsidies in rich countries..