ReedsDairy.com

ALAN REED - THE MILKMAN

One big reason food prices are high

November 27th, 2007

I typically do not jump on my puplic soap box and rant and rave about things in the world.
My family will testify I save that for around the dinner table.  For this topic I can not resist
to say what is the truth.

One of the main products that has driven the price of all milk and foods in general higher and higher is the price
of corn.  We ship in a semi load about everyother week.  The  price of corn has way more than doubled
over the last 12 months.  This is due to the government subsidy for ethanol.  The Wall Street Journal
a few weeks ago had an article stating the energy used to produce ethanol was greater than the
energy received from ethanol.  So why is the government spending your tax dollars to keep
ethanol production in tack?

On Sunday the Post Register, Idaho Falls local paper, had a reprint from a column by the Kansas City Star
talking about ethanol.   Here are a few quotes from that article.

“Plants that produce corn-based ehtanol could drain valuable supplies of water now used for drinking.”

“People are buying more ethanol than ever.  But part of the reason behind the boom is that politicians
 - to curry favor with the Midwest - have given unfair advantages to corn-based ethanol.”

Ethanol gets and excessive 51 cents per gallon federal subsidy which gives it an unrealistic market
advantage.  That is your money begin spent to keep ethanol at the head of the alternative fuel list.
In doing so the price of all of your food is going up due to the price of corn.

I agree corn-based ethanol should be part of the alternative fuel options, although it should be more
market driven.  Other products such as perennial grasses, wood chips and wheat straw are cheaper
ways to produce ethanal.  Why not help products that will make less expensive ethanol?  Politics is why,
and we are paying for it.

Okay, okay…. I am getting off my soap box.  Guess what got me started on this?  I just paid my corn
bill for last week!  My family will apprecaite you letting me get this out of my system before I go home.
We will have a quite dinner tonight.

Thanks for supporting your local cows;  no federal subsidies involved.  Just pure wholesome milk produced
without the use of any artificial hormones injected into our cows.

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