Manteca Bulletin: Turkey Prices Soar as Corporations Gobble Up Pork in Form of Ethanol Subsidies

November 10, 2011

Having turkey sticker shock? You can thank Al Gore. Actually you can thank Gore and the Midwest ethanol subsidy lobby consisting of Republican and Democrat lawmakers alike. Gore was the leading cheerleader for ethanol as the elixir for all that ails America when it comes to energy. He led the charge to put in place ethanol subsidies. The end result: Ethanol gas that is not cost effective and has created a shortage of corn that in turn has sent food prices climbing.

The hardest hit is Third World countries that rely partially on buying grain from American farmers to feed poor people.

It is also hitting American consumers in the pocketbook. It is particularly noticeable as Thanksgiving approaches. Corn is the primary feed for turkeys. Ethanol subsidies have diverted much of the crop into fuel production essentially tripling the price of feed for turkeys. That puts the squeeze on turkey growers and ultimately you the consumer.

It’s the classic lose-lose scenario from the government meddling with the marketplace believing they know better than the private sector. Not only are you footing the bill for ethanol subsidies but you are paying more for food because those subsidies are being used to give farmers better prices than the market allows.