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Corn Prices Going Out of Sight

Original post made by Mike, College Terrace, on Jun 19, 2008

This story contains 121 words.

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Comments (1)

Like this comment
Posted by Gary
a resident of Downtown North
on Jun 20, 2008 at 3:57 pm

Mike,

Please explain to all of us how price supports for corn depressed the planting of corn acreage. That's the way it used be, but I am not aware that is still that way. Suppression of supply, using price support deals, was the socialist model (FDR). However, we eventually freed ourselves from this constraint...price supports became a floor that allowed farmers to plant fence-to-fence (supply side argument).

Corn to ethanol IS absurd, however, it also allows farmers to get high prices, thus obviating the price support level.

[Portion removed by Palo Alto Online staff.]


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