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Price Floors and Agriculture ⢠Letâs say it costs an American farmer $1 to grow a bushel of corn⦠⢠And the market price for a bushel is only 80 cents. ⢠The US government will routinely set a âprice floorâ of $1.20⦠⢠And pay the farmer the difference, PLUS a little more⦠⢠So the farmer recoups his costs, AND earns a small profit. ⢠So what happens? ⢠Farmers routinely grow TOO MUCH corn⦠⢠Resulting inâ¦? ⢠Corn surpluses. ⢠And what are we gonna do with all this extra corn? ⢠Turn it into high-fructose corn syrup and use it for sweetener⦠⢠Itâs CHEAPER, LESS TASTY and LESS HEALTHY than sugar cane syrup. ⢠But what about the poor sugar farmer who has now lost business to the corn syrup guys? ⢠Give him a subsidyâpay him NOT to grow sugar cane.
