“I think you are arguing that prices would be lower with out government involvement, and that’s true.
The problem for farmers, and consumers is that current prices are below cost of production.
Short term lower prices are certainly a possibility, but not sustained lower prices.”
certainly corn would be at a lower price if no govt interference.
the point is that corn would no longer be grown as it already displaced a more lucrative other type of grain.
markets will find their place, and corn’s is distorted
In concept it is as simple as you stated. in practice it’s almost impossibly more complicated.
Since the 1950s the US Government has had a cheap Food for Consumers Program. There are various and almost countless subprograms, the Farm Program being the catch all phrase.
It’s goal is to provide cheap food, and as such it has been extremely successful until the environmentalist’s got involved.
One important aspect of the program was to keep farmers poor, so that they would be held captive by the government, forced to grow food at barely subsidence prices.
For a farmer, the choice was clear; Either sign up, grow what you were told too, don’t grow what you were prohibited from growing, and leave certain fields unworked when instructed. OR; go do something else with your life. There was really no in between.
Most farmers, including my family, eventually capitulated.
Then came the fuel mandates of the 90s. Suddenly farmers could make a profit similar to what their counterpart businessmen in the city were making. That included the ability to tell the government to stuff their cheap food business.
Slowly the government has regains it’s stranglehold, and farmers are once again facing serious long term minimal margins, and the heavy hand of the local bureaucrat.
You say they should grow a more lucrative crop. Sounds good. You can provide specific information to the farmer, and become a millionaire a hundred times over.
I’d like to join you if invited. I have lots of people who are looking to farm more profitably. I’m meeting with 30 or 40 next week, don’t delay.