Econ-Atrocity: The Perils of Cheap Corn
By Heidi Garrett-Peltier, CPE Staff Economist
March 5, 2007

You are what you eat.  And according to Michael Pollan, author of The
Omnivore's Dilemma, that means we're corn.  Corn has now made its way
into our diet in the form of fillers, sweeteners, oils, alcohols,
pills, and breakfast cereals, not to mention of course the indirect
path it takes through animal feed.  Why should we care?  Because cheap
corn has been linked to obesity, and obesity will soon overtake
tobacco as the leading cause of preventable death.

U.S. farm policy contributes to the obesity epidemic by subsidizing
corn production.  According to the Environmental Working Group of the
U.S. Congress, corn subsidies in the United States totaled $51.3
billion from 1995-2005.  These billions of dollars are collected from
taxpayers and used to lower the cost of corn production.  Most of
these tax-dollars-turned-subsidies are used to support big
agri-business: 70% of corn subsidies go to the largest 10% of corn
producers.  Opponents of income redistribution object to taxing the
rich in order to help the poor, but corn subsidies are an instance
when the taxes of the masses are largely used to fund the rich.

As a result of subsidies, we have overproduction of corn.  When a
business can produce something more cheaply, it produces more of it as
long as there is a market.  If supply grows but there's not enough
demand, producers will receive the signal that they should cut back
supply.  They don't want to be stuck with silos full of rotting grain.
However, if they can find a way to create a market or expand a
market, this will increase demand for their product and they will not
have to cut back supply.  Corn producers have found almost limitless
ways to increase their market: by producing corn syrup, high-fructose
corn syrup, dextrin, maltodextrin, corn starch, dextrose, fructose,
xanthum gum, and well, you get the idea.  And these are just the
ingredients you can read (though not always pronounce) on a nutrition
label.  There are of course plenty of other corn-derived products that
are beyond the scope of this Econ-Atrocity.  In fact, over half of
corn production is used for animal feed.  This is another issue in and
of itself, since animals can have problems digesting corn-based feed
and they are often given antibiotics in response.

Cheap corn means cheap fillers and sweeteners.  Since fillers and
sweeteners are the building blocks of mass-produced food, we end up
with supermarket shelves and school cafeterias stocked with
highly-sweetened calorie-dense foods.  Which, of course, lead to
weight gain and ultimately obesity.   According to the American
Obesity Association, approximately 127 million adults in the U.S. are
overweight, 60 million obese, and 9 million severely obese. The
prevalence of this disease is growing rapidly.  The effects - which
include elevated health care costs, higher risk of heart disease and
diabetes, depression, and many others – are disproportionately borne
by low-income individuals and communities.  Lower-income individuals
have reduced opportunities to purchase healthy foods, and programs
like WIC and Food Stamps prioritize calorie-dense foods.  But there
are steps we can take to try to reverse the damage.

We can certainly start by changing individual behaviors – paying more
attention to food labels and making wiser food consumption choices.
But the obesity epidemic is of national concern, and we must therefore
move beyond individual choices to collective and legislative action.
Write to congress to ask for a change in farm policy (the American
Farmland Trust has initiated a campaign for this – see link below);
advocate for healthier food choices in your workplace or your town's
school; check out some of the links below to organizations that
outline community action programs.  To restore our freedom to choose,
we need to create an environment in which we can make healthy choices.

To read about the connection between farm policy and obesity:

-"Food Without Thought: How U.S. Farm Policy Contributes to Obesity,"
IATP, March 2006.
http://www.iatp.org/iatp/publications.cfm?accountID=258&refID=80627

-Pollan, Michael, "The Way We Live Now: The (Agri)Cultural
Contradictions of Obesity", New York Times Magazine, Oct. 12, 2003.
http://www.michaelpollan.com/article.php?id=52

-Pollan, Michael, The Omnivore's Dilemma, Penguin Press, 2006.

For information on corn, including subsidies, visit:

-National Corn Growers Association:  http://www.ncga.com

-The Farm Subsidies database of the Environmental Working Group:
http://www.ewg.org/farm/progdetail.php?fips=00000&progcode=corn

For general information on obesity, including community action, visit:
The American Obesity Association: http://www.obesity.org

For suggestions for individual and community action, visit:

http://www.farmland.org/programs/campaign/documents/AFT_PublicHealthFarmPolicy_2006.pdf

http://www.cnr.berkeley.edu/cwh/activities/child_weight2.shtml

http://www.dhs.ca.gov/ps/cdic/copi/html/takingaction.htm

http://www.healthysiliconvalley.org/pdflib/CAP_Screen.pdf

(c) 2007 Center for Popular Economics


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