Friday, April 16, 2010

The Question: "Why is Junk Food So Cheap"

I started my research with one fundamental question:

Why is fast food which is processed cheaper than organic non processed foods?

3 simple reasons:

(1)The government subsidizes most ingredients found in processed foods through the Food, Conservation, and Energy Act of 2008
(2) Processed foods are mass produced, so you receive a price break
(3) Lower salary cost due to using pesticides and machinery.

Government Subsidized Crops (Commodity Crops)
Wheat
Corn
Grain sorghum
Barley
Oats
Upland cotton
Long grain rice
Medium grain rice
Soybeans
Other oilseeds

LIMITATIONS REGARDING CERTAIN COMMODITIES.—
(1) GENERAL LIMITATION.—The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres unless the commodity, if planted, is destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS.—The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES.—
Paragraphs (1) and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans
and pulse crops).
(C) Wild rice.

In 2008 844,00 farms received government subsidies of 10.2 billion dollars. This number sounds great until you realize that this number represents 38% of all U.S. farmers and even more staggering of the 38%, 62% or 523,280 are commercial farmers.

(Commodity crop and limitations information courtesy of Public Law version 6124 of the Farm Bill )

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