In the US farming has been a none to profitable business for the last 50 or so years. The US government ensured low commodity prices by buying up low priced crops when they were abundant and dumping them to keep prices down during any shortage.
(On this part I am sketchy.) To make matters worse Canada paid its farmers significant subsidies for growing their crops, wheat comes to mind. When the prices in the US were up, subsidized Canadian wheat dumped on US markets would prevent further price increase. I see this a failure on the part of the US rather then Canada.
Currently the US government dictates the actions of farmers because the artificially low (government enforced) commodity prices forces farmers to sign up for (take part in) government programs that will boost their income but only if they do as the government dedicates.
When it becomes economical for farmers to produce bio-diesel food production will drop on a global basis.
If farmers were to grow their own fuel it could reduce the food surplus and increase the commodity price to where they could make a decent living. Maybe even get rich. Just like the companies who process the food you are eating.
Think about it. Is the US cheap food policy finished ?
(On this part I am sketchy.) To make matters worse Canada paid its farmers significant subsidies for growing their crops, wheat comes to mind. When the prices in the US were up, subsidized Canadian wheat dumped on US markets would prevent further price increase. I see this a failure on the part of the US rather then Canada.
Currently the US government dictates the actions of farmers because the artificially low (government enforced) commodity prices forces farmers to sign up for (take part in) government programs that will boost their income but only if they do as the government dedicates.
When it becomes economical for farmers to produce bio-diesel food production will drop on a global basis.
If farmers were to grow their own fuel it could reduce the food surplus and increase the commodity price to where they could make a decent living. Maybe even get rich. Just like the companies who process the food you are eating.
Think about it. Is the US cheap food policy finished ?
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