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NW IL | I just wanted to share this example of how gov't payments to farmers can actually leading to higher food prices in the grocery store.
In the last 2 years we've had the chance to do some canning crops. The in season labor can be slightly higher, but pay is slightly better than commodity crops, and the real benefit is no harvest expense, and sometimes no seed and planting expense.
The "problem" is that sweet corn, green beans, peas, etc. don't get many gov't payments. This fall we did the math and with gov't payments the canning crops were almost a wash all things considered. This spring we told them we would limit our acres. They came back a week later and said they were upping the price for everyone. They had to buy acres because corn and soybeans, even with low prices, were competing with canning crops because of the recent gov't payments.
The increase in price only comes out to about $.01- .02 per can difference in the store, but it's an interesting side effect of government subsidies.
Also another reason for the government to try to keep a lid on commodity prices... | |
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Subsidies and increased food prices
