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Food Prices May Force Cuts in Farm Subsidies

Normally 'untouchable' price supports at risk in Congress

By Katherine Thompson,  Newser Staff

Posted May 2, 2008 2:32 PM CDT
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(Newser) – Soaring food prices are putting pressure on Congress to withdraw some of the billions in  farm subsidies and ethanol incentives that have been considered politically untouchable for decades, the Los Angeles Times reports. With average farm income more than $89,000 this year—30% above the national average—the White House wants to cut off payments to farmers who earn $500,000 or more. Farm lobbyists are trying to double that.

The push to divert  more corn from the dinner table to the gas tank, popular in Congress just a year ago, is now widely blamed for jacking up prices. "It's hard to believe that in five months our country has gone from a strong commitment to pay any price for energy security to the kind of backlash we've seen against ethanol," said a corn lobbyist.

The rising prices of groceries have Congress questioning the wisdom of passing out subsidies to rich farmers to produce biofuels instead of food crops.
The rising prices of groceries have Congress questioning the wisdom of passing out subsidies to rich farmers to produce biofuels instead of food crops.   (AP Photo/Danny Johnston)
As the average farm household earns more and more (one third higher than the average US household), cries to pull government agriculture subsidies intensify.
As the average farm household earns more and more (one third higher than the average US household), cries to pull government agriculture subsidies intensify.   (AP Photo/Todd G. Dudek)
Last year Congress mandated that more ethanol be produced, but using corn for fuel depleted the food and feed stocks, driving prices upward.
Last year Congress mandated that more ethanol be produced, but using corn for fuel depleted the food and feed stocks, driving prices upward.   (AP Photo/Charlie Neibergall, File)
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Food or fuel?
Chicago Tribune

Farmers: Oil price are the 'main culprit'
CNN

Politics • Green • US

 
Congress • agriculture • ethanol • corn • biofuel • farmer • food prices • subsidies

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