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Corn in the US is heavily subsidized. It's why corn syrup is so prevalent in US foods, because the subsidies mean it's cheaper than any other sources of sugar.
by AceJohnny2 6y ago
Corn in the US is heavily subsidized. It's why corn syrup is so prevalent in US foods, because the subsidies mean it's cheaper than any other sources of sugar.
In the US, Iowa is the largest producer of corn [1] (producing nearly 40% more than the next, Illinois,) and thus the greatest beneficiary of those corn subsidies. Could we reduce those corn subsidies? No, it's politically nonviable, in part because Iowa has enshrined in its laws that it must have the first primaries in the US [2][3]. No candidate that has ever said anything against corn subsidies has won a primary.
[1] https://www.cropprophet.com/what-state-produces-the-most-corn/ https://www.cropprophet.com/what-state-produces-the-most-cor...
[2] https://constitutioncenter.org/blog/why-iowa-and-new-hampshire-go-first https://constitutioncenter.org/blog/why-iowa-and-new-hampshi...
[3] https://slate.com/news-and-politics/2004/01/why-the-iowa-caucus-comes-first.html https://slate.com/news-and-politics/2004/01/why-the-iowa-cau...
- AceJohnny2 6y agoAnd if you believe in a link between obesity, diabetes, and the prevalence of corn products in our food, the chain of causality looks even worse.
- sjg007 6y agoBig corn. Amazing plants have enslaved us.
- jagger27 6y agoThere’s a brilliant chapter in Sapiens: A Brief History of Humankind about how as we domesticated wheat, it domesticated humans in return. Grains are thought to have been dropped along trade routes which allowed for humans to be less nomadic as crops became established. Then we got comfortable. Fascinating to think about.
- wnevets 6y ago> Corn in the US is heavily subsidized. So is oil. So farming corn is actually subsidized at-least twice!
- mycologos 6y ago> Iowa has enshrined in its laws that it must have the first primaries in the US I'm confused, how can a single state unilaterally require that its primary is the earliest in the nation? What's to prevent another state from passing a law that its primary must be one day before Iowa's?
- leecb 6y agoDoes this mean that if another state organizes a primary earlier than Iowa's primary, that Iowa will reschedule their primary to be even earlier than the other state?
- jcranmer 6y agoThis is basically what happened in 2008.
- maxerickson 6y agoThey can't stop other states from competing to be first.
- CountSessine 6y agoIf another state scheduled their's ahead of Iowa's, Iowa's state officials would be legally required to reschedule Iowa's ahead of this other state's. It would be super fun if another state passed a similar law.
- consensusform 6y agoThis claim, often repeated, is misleading to the point of dishonesty. Corn isn't really subsidized, and iowa corn farmers are not the benefactors of the agricultural bills. Cattle producers and chemical corporations are subsidized, and the way they're subsidized is by a myriad set of policies which encourage grain prices to stay very low. This makes cattle feed cheap and corn and soy inputs to chemical plants cheap. If the price of corn doubled, farmers could afford to pay their mortgage and taxes without trying to extract every bit of possible yield. But then the price of beef would go up and the profits of 3M and Dupont would go down, and that's a far more powerful force than farmers in Iowa.
- gwright 6y agoI don't know much about direct corn subsidies, but we could talk about sugar tariffs -- which you could interpret as a subsidy to any substitute product producer -- like maybe corn syrup producers.
- CountSessine 6y agoI'm kind of puzzled by this. Your post defies conventional wisdom (which you say is misleading). I'm giving you the benefit of the doubt because conventional wisdom is often misleading. But these links seem to indicate that in fact corn farmers ARE directly subsidized, both in terms of crop insurance (cheaper than market insurance is clearly a subsidy), as well as price protection. See that second link, especially ARC and PLC, which compensates farmers if their prices fall below benchmark rates set by Congress. Is that not a direct subsidy? Are they wrong? (genuinely curious - your post is interesting enough that I felt I had to do some research to clarify my own thinking) https://www.cato.org/commentary/examining-americas-farm-subsidy-problem https://www.cato.org/commentary/examining-americas-farm-subs... https://www.downsizinggovernment.org/agriculture/subsidies https://www.downsizinggovernment.org/agriculture/subsidies
- jon_richards 6y agoSubsidies have transitioned away from direct payments to subsidized insurance. The insurance isn’t just about natural disasters or crop loss, it guarantees minimum revenue based on farmed area, basically resulting in direct payments whenever prices are low. That has been successfully rebranded as “not a subsidy”. https://farm.ewg.org/progdetail.php?fips=00000&progcode=corn https://farm.ewg.org/progdetail.php?fips=00000&progcode=corn
- stolenmerch 6y agoThe government subsidies on corn pushes Iowa farmers to produce more than normal (depleting the soil faster) and sell their corn regardless of the market price. This is mostly done at the behest of other industries and huge food corporation lobbyists. It's a perverse economic incentive to say the least. I don't disagree with your conclusion, but I also don't think there's a bright line between corn subsidies and Iowa somehow playing kingmaker in the caucuses.
- fallingfrog 6y agoIt’s my understanding that these subsidies came into existence in the Great Depression when farming was unprofitable even while people were starving. The government came to the realization that free market forces are not enough to stabilize the supply of food, and when food becomes unavailable... bad things happen. Car companies can go out of business and the country will survive, airlines can fail and the country will survive, movie theaters can go bankrupt and the country will survive, but food? That’s an existential crisis for the whole nation. When large masses of people start to starve, you’re looking at political change. You don’t fuck around with your food supply. You can’t just leave that up to supply and demand. Hence it’s subsidized and managed.