The price of milk is reaching all-time highs. Why?
Farmers and the media like to blame it on the use of corn for ethanol production, the cost of fuel, and price supports on feed. I blame it on several factors:
The USDA, which is riddled with socialists
Price supports not only on feed; but also on milk, itself
The price of fuel
Political ‘caving’ to the farmers.
There is no debating the known fact that the bureaucrats at the USDA are socialists. All bureaucracies are riddled with socialists.
Price supports are a different story, however. The price support on milk, for instance, is based on delivery from Wisconsin to wherever. Dairy farms are located all over the USA. No matter where you live, you pay for your milk to be delivered from Wisconsin, even though it may come from a farm just down the road from you. Just changing that would drop the price of milk significantly. Corn is another price-supported crop; and it doesn’t need support. Hell, the dairy farmers are claiming that there is a shortage of corn (and soybeans, another price-supported feed crop) as a reason for the high milk prices.
Ready for a shock? Corn that has been used for ethanol production is actually better feed than raw corn. It has a higher percentage of protein than raw corn. The same can be said of soybeans (used in the production of bio diesel fuel).
Peanuts are not only price-supported; but there are high tariffs on imported peanuts. Wheat? Price-supported. Milo maize? Price-supported. Sugar? Price-supported and tariff-protected. Google almost any food product; and refine the search for price controls. You are in for a shock. Even tobacco (not a food crop and in great disfavor) is price-supported.
Further, price supports were established at a time when farmers did not have the access to world markets that they now enjoy. Price supports are no longer necessary.
Another factor in the rising prices is the practice of paying farmers not to plant. Millions of acres of land lie fallow so that the owners can collect a guaranteed share of your tax dollars. Those acres could be producing corn, soybeans, milo, or another valuable crop. Instead, they lie fallow; and sometimes turn sour to the point where they must be renovated before they can be planted. In the Rio Grande Valley of Texas, there are large tracts of salt land that are paying the owners well just to own them. Oh, did I mention that, even though crops aren’t planted on a piece of land, the owners still graze cattle, goats, etc on it? In other words, they are double-dipping!
It is definitely time to commence a letter-writing campaign…
Posted on August 11th, 2007 by torone
Filed under: General | No Comments »