Food Fight!

From the Columbus Dispatch:

Fending off criticism that they fear could jeopardize ethanol subsidies, Ohio corn growers shot back at corporate food producers yesterday, saying they continue to charge high prices and reap big profits even as corn prices plunge.

Corn growers are facing off against a broad coalition including livestock groups, restaurants and corporate food companies that is calling on President-elect Barack Obama to end the nearly $5 billion in annual subsidies for the ethanol industry.

Since I've already angered the auto industry, why stop there?  I'm opposed to many (most?) farm subsidies.  I'm all for correcting externalities by subsidising beneficial behaviors and taxing costly behaviors.

But artificially inflating incomes of inefficient businesses? That's bad policy.

Comments

[Christopher Lutz]

After realing from the effects of foreign oil dependency - should we allow ourselves to become dependent on foriegn food sources as well?

Ethanol is a terrible idea. Regardless of one's personal opinion, it takes more energy to produce it than it makes. Not too mention the unintended consequences like "high food prices".

In pure market driven economic terms, subsidies are bad for obvious reasons; however, SOME consideration must be made for strategic objectives.

The question is how much and which items?

[Jayson R. Jones]

Record Profits for Oil Companies...and continued subsidies. Record profits for Insurance companies, then a Bail Out when their gamble didn't pan out. High Profits for most Big Corporations and the safety net of Bail Outs in the offing if they miss-manage. Why should the little guy; the farmer, factory worker (the few we have left),food service employee, etc have to suffer always being shorted on profits?

Who helped the farmer a few years ago when foreclosures broke up family farms, to be bought up by Big Agra? I'm surprised that the farmers do not go out on strike. Ethanol from corn is a very bad idea...hemp is a far better producer than corn but no one is allowed to grow it.

I do not mind if real individual farmers make a little profit now, not the "Absentee Farmer" who reaps much of the subsidies according to the latest GAO Report.

The day will come when the 'workers' "throw their bodies upon the gears and levers of the machine and make it grind to a halt until fairness is restored." Then we will see if the Government is 'of, for, and by the People' or 'of, for and by Corporate America'.