Windfall Profits for Big Food: Where's The Outrage? 28 comments
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Question: Why don't the "obscene, windfall profits" of Big Food get the same attention as the profits of "Big Oil?" Where are the Congressional hearings and proposals for windfall profits taxes on Big Food? After all, the increase in profits for major food companies from 2005 to 2007 are ridiculously and obscenely higher than the paltry 12% increase in profits for Exxon Mobil (XOM) (see chart above).As Food Prices Spiral, Farmers, Others Profit
WILLMAR, Minn. (AP) — The steepest run-ups in food prices since 1990 are hurting grocery shoppers, restaurants and school cafeterias but they're making others rich.
The winners in the new food economy include crop farmers selling corn and wheat for near-record highs after years of crushingly low prices. Ingredient makers like Cargill and ADM (ADM) are rife with profits. Fertilizer and tractor companies are cashing in.
Profits at seed and pesticide maker Monsanto Inc. (MON) reached nearly $1 billion last year — a 14-fold increase since 2003. They've tripled to $1.1 billion at agrichemical maker Syngenta (SYT) and agriculture divisions of DuPont Co. (DD) and Dow Chemical Co. (DOW) have also seen their earnings balloon. Cargill, which makes ingredients, boosted its profits to $2.3 billion, up nearly six-fold since 2001. Meanwhile, profits at agricultural processor Archer Daniels Midland Co. have more than quadrupled to $2.16 billion during the same period.
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This article has 28 comments:
As for the oil execs..they should have told Congress to stick it! If someone wants to point fingers and blame then at least have the guts to start with those that control 80% plus of the world oil..National Oil Companies...of which I most certainly include Russia's Rosnft...See what kind of crap Putin takes under questioning....
Nowhere.
These people have no shame, whosoever.
They will repeat any lie.
They will "bear false witness against their neighbors" time and time again.
No sir, the only outrage they feel is if the GOP tells them to believe some propaganda talking point.
They have absolutely no problem with borrow-and-spend $3 trillion on a war based on lies.
Lies? What lies? They have no clue.
When the "dirty hippies" said back in 2000 that it would NOT be a good idea to let two OIL men run our country--there was no outrage.
What could possibly go wrong? They will surround themselves with "smart" people, they said.
You're just being a "boy who cried wolf".
"The sky is falling" they laughed, again and again.
Funny...when they fill up their F-350 trucks and SUVs, I don't hear them laughing now.
JJ
Is along as we keep pulling the D (for dumb) and R (for dumber) levers, we'll continue to get the shaft.
Then If you want to really get sobered up, read former Governor Dick Lamm speech to a group in DC, How to Destroy America, A Suicide of America.
This Nation has been foolish, this Cap & Trade S.2191 has a fraze in the tilte(and For other Purposes) leaves a opened door for Trillions in Tax increases,Trade restrictions,that only benifits Congress itself, both partts will explote it & we will pay for it! Vote out all,but the Few,that up-hold the true Constitution,untill then, nothing will be changed!
Instead of grousing at this guy or that guy, why don't we just stop buying. Then the price will go down, that is if the people in China don't think it is more valuable than the price at which we stpped buying and then the price will likely go higher still.
I like this capitalistic system and that is why Iam over weight in oil investments. I don't mind if oil continues to rise, I paid double $4 in Europe.
The political divide does not stem from motivations. With the exception of 1% outliers, everybody's motivations (at least in the constituency) are pretty good. The differences in policy recommendations stems from different perceptions. Or, in the case of government, special interests lobby them for handouts. Members of both parties sign up for this, too often for *anyone's* tastes.
Let's not presume the worst of each other over the failings of some of our "leaders". Let's not be assh*les to each other.
More germane to the post, this myopia over "Big Food" and -- my personal favorite -- "Big Water" profit margins has nothing to do with "Dem" or "Rep". For example, I'm a liberal and I think oil company margins are just fine. Indeed, I don't like the constant tinkering with the tax codes, because a shifting regulatory/tax framework makes it more difficult to raise capital to invest.
producers; they already know the culprit- themselves. They're not worried however, because the secret is Exxon doesn't vote to reelect Congress, but farmers do.
What farmers vote? Are you talking about the 3-4 CEO's of the corporations that benefit from subsidies? Or the millions whom lost the family farms to corporate influence, lobbying, legislation and subsequent foreclosure?
The farmers vote that counts is the CEO's of the corp's who bribe the congress with big $$. Majority of little farmers are just running around trying to survive on the crumbs. Most who are surviving also have day jobs somewhere else. But the MSM still call it a "Farm Bill" because they wouldn't know a cow from a bull.
I can give the government a better ROI. Give me $300B in subsidies and I will post a $299B profit (after overhead).
Profits are fine, but not at taxpayer expense. What happened to capitalism?
I know several farmers and unfortunately they are not much better off today than they were when prices were half the price. All their costs of fuel, equipment, rent, fertilizer, and everything else have doubled or tripled. They have no guaranteed income if the weather destroys their crop other than a small amount of relief from this subsidy program which is spread across the entire country.
If you want to truly point fingers at higher food costs, go directly to the food companies and retail stores. 1 box of cereal has about 17 cents worth of grain in it and it costs you $3.