June 4 (Bloomberg) -- The U.S is `encouraged' by talks about biofuels at the World Food Summit, Agriculture Secretary Ed Schafer said in a statement issued to allay what he described as ``confusion'' over remarks he made earlier.

The debate surrounding biofuels at the meeting has centered on whether their use is driving up food prices by using land that would otherwise produce food. That led Schafer earlier today to tell reporters at the three-day summit in Rome: ``I doubt that there will be a positive agreement on biofuels.''

The diversion of land to the cultivation of crops for ethanol production has contributed about 30 percent of the rise in food prices, the Washington-based International Food Policy Research has said. Schafer has put the figure at 2 to 3 percent. Delegates to the meeting are debating the wording on biofuels in a final conference declaration.

``We have been encouraged with the significant progress on the biofuels section of the declaration discussions,'' Schafer said in the statement. ``While we await the next draft, it looks as though consensus on this important issue is within reach.''

The U.S., the top maker of ethanol from corn, yesterday came under criticism from President Luiz Inacio Lula da Silva of Brazil, the biggest producer of ethanol from sugar cane. Lula said that ethanol made from corn, unlike that from sugar cane, can only be competitive when it is ``shot up with subsidies and shielded behind tariff barriers.''

The U.S. imposes a 54-cents-a-gallon tariff on imports of biofuels, including sugar-based ethanol from Brazil.

``I don't expect everybody to come out of here saying `oh we believe the U.S. and their direction on biofuels','' Schafer told reporters earlier. ``Certainly I think we've made the case that there are other important factors that we should be focusing on.''

Biofuels haven't dominated the conference, he said.

``The reality is there is a basketful of problems here that are causing food price increases,'' Schafer said. ``The majority of it is energy costs and increased consumption.''

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net;

Last Updated: June 4, 2008 12:11 EDT