Quote:
Originally Posted by Xist
So, what would happen if subsidies went away?
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Corn ethanol-specific subsidies, general corn farming subsidies, transportation subsidies or gasoline subsidies? Best to be specific, here...
Many first world countries, as the United States is (are... waited... are the United States a country or a confederation? Hmmm....), have high levels of farming subsidies.
Which, in turn, is why third world farming is so unprofitable. No way can your typical farmer pushing a handcart out in the sticks compete on price with a rich, industrialized farmer receiving generous subsidies from even richer taxpayers.
Which, in turn, is why they'd rather grown fuel crops to sell at higher prices to corporations rather than food crops which they can only sell for pennies on the pound.
Which, in turn, is part of why the food versus fuel debate even exists.
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Errh... long story short: There are complex farming subsidies, with or without corn-for-fuel, and the ethanol policy only affects demand, not production price.