In its annual publication, “The State of Food and Agriculture 2008” (SOFA 2008), the United Nations Food and Agriculture Organization (UN FAO) presents a comprehensive analysis of the risks and opportunities of biofuels and the policy challenges it faces. Part one of the document discusses (1) biofuels and its relationship with agriculture, (2) economic policy drivers for biofuels, (3) impacts of biofuels on markets, policy, environment, poverty and food security, and (4) policy challenges. The analysis concludes that the rapid growth of biofuel production and consumption in many countries has outpaced the understanding of its potential impacts on food security and the environment. It is essential, therefore, to “put biofuel policies on a more solid base”. With the right policy framework for developing economically sustainable biofuels, risks can be minimized and benefits can be enhanced..