Soaring corn prices are squeezing meat and milk producers, but consumers will not necessarily see higher prices at the grocery checkout, Agriculture Secretary Mike Johanns said in an interview Thursday.
Costly corn has made it more expensive to feed cows, chickens and pigs. Demand for ethanol, a fuel made from corn, has pushed the price of corn above $3 a bushel, the highest level in more than a decade.
That is bound to have an impact on farms and ranches, Johanns said.
"My best projection is that for a couple of years here, you are going to have a tug-and-pull between various industries," Johanns told The Associated Press.
Because so many factors go into making food, consumers probably will not see a direct impact, he said.
I think Mike Johanns is talking out his ass here. The Agriculture industry is supposed to suck it up and and lose more money than they do to allow consumer prices to stay the same? That's insane!
It doesn't take a rocket scientist to know that cost in the Agriculture industry go up, food prices are going to go up and with corn prices sky high, food prices are going to go up. That's the decision our leaders in Washington and the buying public have made. They want cheaper gas prices and are willing to pay more for food to get it. Obviously driving their vehicles around is more important than cheap food so why should Johanns try to insinuate otherwise?
Hell, the talk is that the new Farm Bill will push even further into energy production which will drive the price of food even higher. I haven't heard many people talk about this but it's going to happen. The consumers out there who think food comes from a grocery store and not real live people working in the country, don't understand that the drive to grow our own energy will take land out of food production causing higher food prices. It's basic economics. Shouldn't Johanns be out there educating the public of the repercussions of the decisions being made for and by them?
No, he just wants to hide the facts from the public to drive policy, just like they tried to hide the facts on NAIS until enough people made enough noise. I just want everybody out there to understand the consequences of their drive to grow more energy means higher food prices. This is simple supply and demand. Suck it up and deal with it. Don't try to hide the facts. That just causes problems in the long run.
The supply of government exceeds demand. Lewis H. Lapham
As for the people showing agriculture respect, that's not unusual. City folk have always looked down their nose at country folk. Education is the way to change that and that is what I try to do in my own way here. Let city folks see ranchers as people. Then, person to person we might have more respect on both sides. Be a reasonable, calm voice for agriculture and someday it will have an affect.