Zinnfan sends a link to an
article from Time with in-depth coverage of the machinations leading up to the current farm bill. It's worth a read because it shows how entrenched, sacred-cow constituencies like farmers keep the status quo alive, using influence on Democrats and Republicans (like Randy Kuhl) on the Ag Committee.
As I've mentioned here before, one of the little-covered facts about ethanol subsidies is its impact on food prices (good summary
here). This change has made a major impact on the farm economy. I just spent a lot of time with a family member who lives in the Plains states, and his report was that land prices are at record highs, reflecting the fact that farming has suddenly become quite profitable again.
For example, corn prices, which have hovered around $2/bushel for years, are now twice that. In Iowa, the average corn price in
December, 2005 was $1.70. In
December, 2007, it was $3.95. As the Time article points out, the large farms that receive huge subsidies under the farm bill were making money in 2005. In 2007, they're making a killing. No matter: the dysfunctional Washington process that created the farm bill is unable to take this into account.