Ethanol Subsidies: Are They A Plus Or A Minus?

CattleNetwork.com
10/21/2008 7:43:00 AM

Despite many years of supply management farm policies that included target prices, loan rates, and deficiency payments, many farmers indicated they would rather get their income from the marketplace. For the past two years, that has happened. Or has it?

Early years of government farm subsidies were designed to not only keep farmers on the land, but to provide low cost food to the urban public. Compared to most other countries the US has maintained the lowest cost for foods, despite the run-up in food prices earlier this year. But agricultural economist Dermot Hayes and his colleagues at Iowa State University say farm income is still subsidized, it is just disguised a bit.

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