There is a subsidy on corn, when the price of corn drops below a certain point the subsidy kicks in.
The low dollar, demand from China and elsewhere and ethanol has meant that the price of corn stays above that price point and the taxpayers has saved billions because of it even with the subsidy paid to the ethanol producers.
The farmers doing well also helps the economy. 90% of what the farmers need in made in the USA from seed to machinery. Those people worried about us sending our money to China should take note. The dollar more you spend on food stays in the country, if you save the dollar and spend it at Wal-Mart it goes to China never to be seen again.
Of course if cheap food is everybody goal then oppose ethanol and pay more in farm subsidies so there is overproduction. The trend of the number of farms and farmers has been going down for decades. Screw the grain farmer making a profit for change, the economics of farming with low prices and high costs will drive more and more farmers out of business and we end up importing most of our food at a much higher cost than Ethanol.
I believe just three or four years ago the price of corn adjusted for inflation was less than what it was in the 50’s.
I’ve argued with Dan on other thread. The ethanol
producers get no subsidy, only big gets a credir for
using ethanol. And this week, same as last week
ethanol is a buck a gal cheaper than gas on the
market, in spite of corn prices being driven up by
speculators. People in places like Haiti if they starve
it isn’t because of not enough corn it is becuase of
they don’t have the dough to pay the price as
driven up by speculators. Maybe the speculators should
take up a collection to ship them food!!!!!!!!!!!
You notice this slanted, crappy, biased, stupid,
lying, article is by investors who are trying to
steer blame away from a problem that is their
types of stupids. We’re not blind. we know
when they’re trying a snow job on us.
And if Haiti can’t raise food, they need to get a
way like the Saudis have, to buy it. With oil is what
I mean. Theres is huge oil resrves all around the
Gulf of Mexico, the Chinese are developing it in Cuba,
and I know Haiti gots some. They need to tell greenies
to go to hell, and get big oil off their duffs and
drill. All we hear about, is the Bakken field where it takes 20 wells to equal production of one platform in
the Gulf in the huge deep fields. Of course everyone will
find a hundred excuses why we can’t open new oil
sources as that would drop energy costs....Ed
Not if it comes at the needless expense of other people.
Low crop prices have come from more efficient farming practices, not some conspiracy to screw the farmers. When you can grow more food with less labor there will be fewer farmers. 100 years ago about half the population was in agriculture. Today it is less that 5% simply because of mechanization.