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One of us is wrong -8/15/2008, 2:57 PM


SPOTLIGHT
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Misplaced blame

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It's no surprise when a New Jersey politician doesn't understand agriculture. New Jersey has more acres of asphalt than row crops and is about as far away from Midwest farm fields as one can get before stepping in saltwater.

That's why we won't heap too much criticism on New Jersey's Rep. Jim Saxton, who last week blamed farmers for the rising cost of food. Anyway, that's what CNN reported. Saxton also said reform was needed for a "nightmare of wasteful, outdated (farm) subsidies."

It's true, federal farm programs are a mess, and they certainly are wasteful. But name one federal program that runs smooth as silk and where every dollar is spent with maximum efficiency. Such magic simply does not exist in any government, whether we are talking about city hall or Congress.

Saxton tattoos his ignorance on his forehead when he blames farmers for food prices. Ultimately, that responsibility rests with Rep. Saxton and his cohorts in Congress.

Congress unwisely gives healthy financial incentives to encourage ethanol production, creating skyrocketing demand for corn, which is the principle ingredient in the fuel. Now, demand for the crop keeps growing and that drives up price increases. Analysts predict corn could bring $7.50 per bushel this summer, or three times the price of three years ago.

When the price of corn increases, it takes other things with it. Pork, poultry and beef producers are forced to switch from corn to other feed sources, which results in higher demand and higher prices for those commodities. Higher feed costs mean we pay more for our wings, bacon and burgers.

Today, corn and other grains are profitable for farmers, which means more producers are going to raise it. They are planting near-record acreage with soybeans and corn. Who can blame them? It's smart business to make things that make money, and produce more of it as prices go higher.

Demand is driving high food prices, not crop subsidies. And that demand was caused by Congressmen like our New Jersey friend, who obviously doesn't understand the consequences of federal mandates.

Editorial by the Salina Journal

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