Tuesday, June 12, 2007

The Other Shoe Drops

In the previous post, I put up a column which showed the huge amount of money that has been transfered to production agriculture in the last 10 years. Now with the advent of the ethanol industry, the price for grain has risen, subsidies are no longer necessary, and the livestock industry is actually having to pay a price for the grain it consumes, which reflects a real cost of production, rather than a subsidised cost. After all the money that livestock sector has made in the last few years, one can easily guess the response. They want things the way they used to be. So they are now intent on killing the ethanol/biofuels industry.

I'm posting a link here, which gives more details on this fight. This writer,who I highly respect, has been dead on, in his analysis of the ethanol business, the changes in production agriculture, and the price changes relative to those conditions.

Since I still can't seem to make the links work, you'll have to cut and paste this to your search engine.

Go there and read this column, and any others you see, you'll get some good insite into the farming business.