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Woohoo. Ethanol production helps drive up corn prices. Not sure about soybeans? Do we export ethanol yet? That's nice. Burn diesel/coal to ship ethanol to other places.
Success! With prices high and profits rilling in can can we drop the farm subsidies now?
Don't tell Dayton or he will want to create a state export tax.
This article nicely shows why commodity prices, and thus prices for so many of or food products, are so high: EXPORTS. Ethanol is certainly a factor, but because of the necessity of ethanol by-products, namely DDGs for animal feed, the net impact on the economy is minimal because of substitution. Eliminate ethanol, thereby DDGs, and once again soy prices will rise because soybean meal will be used instead of DDGs. There needs to be major reform to subsidies, crop insurance, and speculation markets. Unfortunately, most o the people who read this have zero understanding of the issues involved and the real world impact of making such reforms. As is so often the case, the most uninformed and biases are the loudest and most outspoken.
@rainpigger: To say that farmers at rolling in profits because prices are high is akin to saying that SuperAmerica and KwikTrip are Makin a killing because gas prices are high. Farmers have made good money in recent years, but as commodity prices have climbed so have input prices. Increased yields and efficiency are as key to higher profits as commodity prices are.
In 2003 total State Agricultural Property Taxes were 275 million dollars. In 2010 total State Agricultural Property Taxes were 551 million dollars. Add that to what farmers pay in sales taxes helps pay for many government services that we all share.
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