Corn prices are so ridiculously low that farmers have to grow more just to break even but then the price drops again. You've got so much corn the only thing you can do is turn it into syrup and put it into everything.
For a long time the goverment would buy corn from farmers at a set price and use it to stock up food reserves. Often, it would up selling its excess overseas at a profit. So farmers didn't plant so much becuase they knew they'd get a decent price for stuff.
In the 60's/70's we opened a trade agreement with China and the system got shut off. Farmers were encouraged to plant to excess which they promptly did and the price of grain crashed.
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ninetydegrees
Actually...
on 2004-02-11 06:18 am (UTC)...we don't subsidize farmers enough.
Corn prices are so ridiculously low that farmers have to grow more just to break even but then the price drops again. You've got so much corn the only thing you can do is turn it into syrup and put it into everything.
For a long time the goverment would buy corn from farmers at a set price and use it to stock up food reserves. Often, it would up selling its excess overseas at a profit. So farmers didn't plant so much becuase they knew they'd get a decent price for stuff.
In the 60's/70's we opened a trade agreement with China and the system got shut off. Farmers were encouraged to plant to excess which they promptly did and the price of grain crashed.
Tom