Comments on: Midwest Farmers 1, Environment 0, Poor People -1 http://www.truthonthemarket.com/2007/03/18/midwest-farmers-1-environment-0-poor-people-1/ Academic commentary on law, business, economics and more Sun, 14 Mar 2010 22:30:41 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: B.C. http://www.truthonthemarket.com/2007/03/18/midwest-farmers-1-environment-0-poor-people-1/comment-page-1/#comment-84035 B.C. Wed, 21 Mar 2007 05:53:46 +0000 http://www.truthonthemarket.com/2007/03/18/midwest-farmers-1-environment-0-poor-people-1/#comment-84035 I grew up in rural Iowa where they are building a number of ethanol plants, so I've witnessed the positive economic impact that the ethanol market has had on these small farming communities. My experience with family farming operations suggests that much of the wealth of the average farmer has been created by assets that are passed down through generations of farmers. The start-up farming operations that I am familiar with generally revolve around livestock rather than crop production. If subsidies and tax breaks make crop production so profitable, my guess is that we would see more entrants into this market. Shouldn't we see more corn producers increasing supply such that prices might stabilize in the near future? I'd also be curious to see some statistics on how the increase in agricultural commodities correlates to an increase in the grocery bill for the average consumer. How much of that 6.8% is directly attributable to the increase in corn prices? And how likely is it that ethanol will be a viable and evironmentally sound alternative in the future? I grew up in rural Iowa where they are building a number of ethanol plants, so I’ve witnessed the positive economic impact that the ethanol market has had on these small farming communities. My experience with family farming operations suggests that much of the wealth of the average farmer has been created by assets that are passed down through generations of farmers. The start-up farming operations that I am familiar with generally revolve around livestock rather than crop production. If subsidies and tax breaks make crop production so profitable, my guess is that we would see more entrants into this market. Shouldn’t we see more corn producers increasing supply such that prices might stabilize in the near future?

I’d also be curious to see some statistics on how the increase in agricultural commodities correlates to an increase in the grocery bill for the average consumer. How much of that 6.8% is directly attributable to the increase in corn prices? And how likely is it that ethanol will be a viable and evironmentally sound alternative in the future?

]]> By: Bob Smith http://www.truthonthemarket.com/2007/03/18/midwest-farmers-1-environment-0-poor-people-1/comment-page-1/#comment-83307 Bob Smith Sun, 18 Mar 2007 19:48:00 +0000 http://www.truthonthemarket.com/2007/03/18/midwest-farmers-1-environment-0-poor-people-1/#comment-83307 Not only do farm households earn more, but they get special tax breaks not available to other businesses (see Schedule F and references to "non-farm" on Form 1040). In addition, they own a lot of very valuable land and equipment. Farm households may not make a large income, but they are usually very wealthy when measured by net worth. Not only do farm households earn more, but they get special tax breaks not available to other businesses (see Schedule F and references to “non-farm” on Form 1040). In addition, they own a lot of very valuable land and equipment. Farm households may not make a large income, but they are usually very wealthy when measured by net worth.

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