A big part of this problem is that the “Green Revolution” brought the need for synthetic fertilizer to the developing world. This is but one of the consequences.

From the Washington Post:

As shock waves from the credit crisis began to spread around the world last month, China scrambled to protect itself. Among the most extreme measures it took was to impose new export taxes to keep critical supplies such as grains and fertilizer from leaving the country.

About 5,700 miles away, in Nairobi, farmer Stephen Muchiri is suffering the consequences.

It’s planting season now, but he can afford to sow amaranthus and haricot beans on only half of the 10 acres he owns because the cost of the fertilizer he needs has shot up nearly $50 a bag in a matter of weeks. Muchiri said nearly everyone he knows is cutting back on planting, which means even less food for a continent where the supply has already been weakened by drought, political unrest and rising prices.

While the world’s attention has been focused on rescuing investment banks and stock markets from collapse, the global food crisis has worsened, a casualty of the growing financial tumult.

Yesterday, Sam’s Club announced that it will begin rationing rice purchases to 4 bulk bags per customer. Already California Costco customers have been making a run on rice and flour, according to the Washington Times, and it’s now being rationed there as well. The New York Sun reports that “major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply.”

Prices have almost doubled.

There are going to be price increases across the board.

Food shortages have been hitting the developing world for some time now, and causing food riots in places across the world like Haiti, Egypt and Bangladesh. It seems our chickens may finally be coming home to roost in the developed world now as well, according to the cover story of this week’s Economist magazine “The Silent Tsunami.”

Agriculture is now in limbo. The world of cheap food has gone. With luck and good policy, there will be a new equilibrium. The transition from one to the other is proving more costly and painful than anyone had expected.

According to some, including Professor Andersen of Cornell, these “abrupt food prices” make this current “global food crisis” historically “as bad as it has ever been.”