Food producers call for action as grain prices soar
Lauren Etter and David Kesmodel | February 15, 2008
WITH the price of wheat and other grains soaring, US food producers are calling on the Government to help farmers ratchet up output.
Some are calling for loosening a federal conservation program that compensates growers for leaving fields fallow. Others are calling for restrictions on exports, an effort that is unlikely to gain traction but one that illustrates the depth of their concerns.
So far, the Government has resisted, but the growing chorus for government action signals a new phase in a long-term shift in the global grain markets.
For years, US farmers have complained about low prices brought on by overproduction. Now, surging demand from emerging nations and the biofuels industry have sent prices sharply higher.[url=http://www.theaustralian.news.com.au/story/0,,23214476-36375,00.html?from=public_rss]more here[/url]