Tuesday, March 25, 2008

What Your Government Grows

Economic insanity:
"My daughter, who owns a feed and farm supply business in Bosque County, Texas, 40 miles west of Waco, reports that corn is being grown in Texas where corn has never grown before. This corn is destined for the ethanol craze.

The agricultural programs supporting corn make it a sure winner for growers. If the crop fails for any reason, federal crop insurance covers the losses. If a bumper crop and a glut tend to depress prices, there is compensation for that, too.

A corn grower cannot lose money. How would you like to be in a business that can't lose money? And 51 cents per gallon federal subsidy for ethanol production sweetens the deal, further distorting grain markets."

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