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Our farmers eyes would water at the extent of US farm subsidies.
All farm subsidies get capitalised into land prices. Banks then lend against these land prices. Remove the subsidies. Land prices fall triggering a banking crisis. Particularly a problem in the USA with its thousands of small local banks.
This Reuters article explains why the removal of ethanol subsidies would cause big problems for the banks and others.
in.reuters.com/article/2012/09/05/us-usa-ethanol-farmbankers-idINBRE88413O20120905
Right Philip, once legislation serving artificial markets (rent seekers) becomes entrenched it’s very difficult to wean the unicorn farmers off the government teat – be it electric cars, solar panels, wind turbines, carbon trading or any number of other renewable boondoggles.
I see Anthony Watts has drawn attention to how the NY Times reports and distorts these issues. “NYT blames food crisis on “climate change,” hides plea to reduce government mandated burning of food for fuel”
The “24.5 Bushels per acre 1970” near the bottom of the graphic is almost certainly a gross underestimate – probably by a factor of 3 or more.
My dad recalls averages from southern Minnesota in the late 1950’s in the mid 80 bushels/acre range. That region is not even the prime area for raising corn. His dad, my grandfather, had won a 1958 contest there with a plot that yielded 135 bushels/acre.