What can the government do to lower the food prices?

Question

I am writing a essay on the current raised food prices. and i want to know how can the government lower to food prices

Answer 1

The best thing that the Government could do to lower food prices would be to stop giving subsidies to farmers. The subsidies create large distortions in the market. The subsidies are supposed to be a kind of safety net for when there are some sort of a shock so that farmers do not go bankrupt and lose the farm during bad times but during a time of record prices it just adds to the problem.

Another great way would be end ethanol mandates and subsidies. Ethanol is a poor alternative energy source and especially the variety from corn. It takes more energy to make it Ethanol than is produced and it produces more carbon than fossil fuels when you include all of the inputs into the crop.

Lastly the Federal Reserve could make an effort to get inflation under control. The loose money supply has been a large factor in the increase in the commodities boom, an increase in interest rates or at least a stop to the huge cuts would help to ease the inflationary pressure.

Answer 2

Discontinue turing food into fuel with the ethanol program.

Answer 3

I'm not too sure if this will help or not, but they could try to promote more locally-grown foods.  It would cut down on shipping costs, because of the high gas prices.

Answer 4

they can lower prices if they do