Farmers this season have seen insanely high prices for their corn grain. Although a new higher-than-expected estimate of corn acreage has driven corn prices down from their high of $8 per bushel in June to around $6.20, corn producers are still sitting pretty. (For comparison, when I started writing my thesis a year ago, corn was at around $4.80 per bushel!)
This is certainly great news for farmers, and they deserve it after a rough, wet spring that saw countless acres of good farmland underwater from record-breaking flooding. However, with corn prices nearly doubling, maybe this is a little too good, especially considering the amount of money farmers pull in every year from government coffers. TIME Magazine recently published an article aptly titled "Want to Make More than a Banker? Become a Farmer!" which discusses the resurgence in agriculture in terms of its profits. The article cites various experts who claim that these high prices are not an anomaly; with increasing wealth and preference for meat in countries like China and India, farmers can count on high prices from here on out.
A new Farm Bill is currently being written. In part, these bills help determine how much money goes to farm price supports such as counter-cyclical payments and direct payments. These high corn prices beg the question: how much do tax payers owe to farmers? Especially in this time of fiscal crisis, should we as a nation be handing over our dear government revenues to farmers who, by all accounts, are doing fine on their own?
A new poll has been started; you can see it on the top right portion of the main page. Feel free to vote and let us know the extent to which Uncle Sam -- and, by extension, you -- should be supporting our agricultural producers.
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