Posted on 01/18/2016 12:43:04 AM PST by Cincinatus' Wife
what’s the point of the question?
How will you fry your spuds?
Today the price of corn is lower then the cost of production because there is no market for all of the corn produced.
Now corn prices will rise if there are markets for it, if not corn prices will go down and corn production will go down until the market price comes to a point that it is profitable to raise it. When this happens and if food production is the only use of corn, you will not like what happens.
It will be a true case of supply and demand.
Corn production in the USA in my lifetime has gone from and average of 35-50 bushels per acre to close to 200 average.
Any adjustments will have to come in number of acres planted.
If you want economically priced food you best hope for continued maximum production usage. It will not happen going the other way.
You give a great insight to corn prices as they relate to food prices. I did not take the time to look at it from the supply-demand perspective. Because of your post, I am on track.
There’s no market for all the corn because corn subsidy has led to malinvestment.
We don’t need and can’t use all that corn. However instead of backing off and letting the free market work: the Government has doubled down on the malinvestment and now forces people to buy corn in the form of ethanol.
Remove the subsidies and the ethanol mandates. Less corn will be grown, corn prices will rise to a free market level - and some of the land currently used to grow corn will be turned over to more productive use.
If ethanol made economic sense for fuel no one would have to mandate by law. It would simply be used because of the benefit.
That’s letting the market work.
By distorting the market there are wide spread and often unforeseen consequences and like drug addiction getting off of them has a cost in withdrawing but the longer you stay on it the worse the damage and the harder to get off of it.
Trump is a mobster pile of pond scum.
bump for later read
Prove it? He came out and strong;ly supported ethanol subsidies. He also said no one can oppose them unless they are owned by big oil. So for king crony, it’s obvious that he’s owned by big corn.
Again, the donaldus hangs himself with his own words.
seems to me Walt you’re defending a government perverting a market because they have already perverted it with this idiotic program.
Maybe Iowa just needs to stuff the envelope a little more. If they are short on cash they can try getting a loan from Goldman Sachs.
Not really ironic....it’s called pandering.
Only if he vows to move the Capital to Kentucky and appoint George Dickel, Evan Williams and James Beam his closest advisors.
How will Cruz be able to cut any deals with ADM if he gets elected?
No special interests like him.
-— Prove it. -—
LOL!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.