Food and Fuel

Wheat hit a new record today:

“Wheat rose to a record in Chicago on speculation that demand for U.S. inventories will climb after unfavorable weather hurt crops in Europe.” - Bloomberg News, 8.6.07

Soybeans fell 1.3% today, but are still up 42% in the past year.

Corn has been down of late, but look for corn to catch up over the next several months – unless the federal government takes away its ethanol subsidies (I have a better chance of pinch-hitting for A. Rod).

You see, farmers planted more acres of corn than at anytime in the past 63 years to take advantage of that subsidy and the anticipated demand from the ethanol plants due to come on line. Thoses extra corn acres came at the expense of other food crops.

Am I the only person concerned about this? Government subsidies are “incentivising” farmers to grow more corn (animal feed) for fuel while “disincentivising” farmers from growing food for people. Does anyone at the Department of Agriculture have the temerity to stand up to the Department of Energy? We pay them for this, don’t we?

Look, I am a hardcore capitalist, but doesn’t anybody have a problem with subsidizing billionaire’s jet fuel (indirectly, I know, but there it is just the same) at the expense of poor folk’s bread, milk, and eggs? This is an unqualified disgrace.

And it won’t do a thing about our long term energy problems.

Yours for a better world,

Mentatt (at) yahoo(dot).com