http://www.washingtonpost.com/wp-dyn/content/article/2007/01/26/AR200701...
A Culinary and Cultural Staple in Crisis
Mexico Grapples With Soaring Prices for Corn -- and Tortillas

By Manuel Roig-Franzia
Washington Post Foreign Service
Saturday, January 27, 2007; Page A01

There is almost universal consensus in Mexico that higher demand for ethanol is at the root of price increases for corn and tortillas.

Ethanol, which has become more popular as an alternative fuel in the United States and elsewhere because of high oil prices, is generally made with yellow corn. But the price of white corn, which is used to make tortillas, is indexed in Mexico to the international price of yellow corn, said Puente, the Mexico City economist.

They should plant more corn. This is not a problem but an opportunity to get rich.

You are greatly oversimplifying. Opportunity is reserved for those with the resources to alter their circumstances. Unfortunately, land and wealth aren't uniformly distributed in Mexico -- a situation which the oligarchy is just fine with. Which is why "opportunity" for the average Mexican means "going north."

Land and wealth aren't uniformly distributed anywhere in the world (especially in so-called communist workers paradises) but that is besides the point. Mexico has the largest economy in Latin America, low inflation, steady (if mediocre) economic growth and even some bright spots where they dominate the world. Certainly better opportunities exist in the US, but there are farmers in Mexico, even small ones, that will get rich if they plant more corn and participate in the global ethanol industry. Those people will spend money on construction, entertainment etc. and this money will ripple through the Mexican economy.

People are portraying the run-up in corn prices like it was some kind of disaster, when now, farmers are actually getting paid what they deserve for their labor. It is not a disaster it is an opportunity. Did I complicate it enough for you Tarzan?

Mexican corn production has doubled in the past thirty years. In recent years, domestically produced white corn displaced white corn imported from the US, as state provided incentives encouraged even greater domestic production. The US had begun exporting white corn to Mexico in the nineties in increasing significant amounts.

US corn exports to Mexico are mostly of feed corn destined for pork and chicken manufacturing enterprises. I suspect that the obesity reported among Mexicans referred to upthread is related to higher meat consumption as the price of meat has declined remarkably compared to tortillas and other wet corn and corn flour products.

So, Keithster, how exactly do you propose 'they' should go about getting rich? The welfare cheque provided Mexican corn farmers accounts for an even greater share of said farmers income than the cheques distributed to the welfare moms with land tenure in the US.

Do 'they' count on the Mexican government maintaining the subsidy level as 'they' plant more corn, assuming 'they' can find suitable ground for corn production? Do 'they' displace some of 'their' co-farmers, so that machinery and chemistry can up production more than it already has? Do the displaced go to California or Virginia?

You fundamentalists are all the same. Ignorant.

..how exactly do you propose 'they' should go about getting rich?

Plant more corn, sell it, make more money.

The welfare cheque provided Mexican corn farmers accounts for an even greater share of said farmers income than the cheques distributed to the welfare moms with land tenure in the US.

Higher corn prices means higher revenue. If the Mexican government wants to keep paying subsidies then the farmer makes even more money.

Do 'they' count on the Mexican government maintaining the subsidy level as 'they' plant more corn, assuming 'they' can find suitable ground for corn production?

See above. If the government wants to foolishly keep paying subsidies that is their problem.

Do 'they' displace some of 'their' co-farmers, so that machinery and chemistry can up production more than it already has?

Where is the evidence that Mexico is running out of farmland?

Do the displaced go to California or Virginia?

What displaced?

You fundamentalists are all the same. Ignorant.

And rich.

I'll take that last as meaning you're proud of being ignorant and rich.

Yeah sure why not. I tore apart his arguments, I can at least throw him a bone.

Flaming is better when we all relax.

Years ago, I swore off arguing with moonies and other assorted fundamentalist loonies.

But here are some matters to consider:

The doubling in Mexican corn production over the past several decades has occurred with the stimulus of state provided incentives, but without an expansion of lands cultivated for corn. What does that tell us? Why would landowners and farmers not have planted corn on abandoned or ignored or otherwise employed land during a period when government largesse made it virtually impossible to lose money doing so?

The run up in corn prices is a function of higher oil and gas prices. (In the US these fundamentals are conflated with so called national security issues, which is just a way to obscure interventionist policies undertaken to benefit elites). Corn production, even in Mexico with its abundance of cheap labour, is heavily dependent on oil and gas inputs and so profits do not increase as much as prices, if at all. Profits are also constrained by the costs of obtaining and maintaing land tenure. How much profit is available for each additional bushel of corn produced in Mexico?

The government of Mexico relies on domestic oil production for 37 % of its revenues, a stream of cash now clearly imperiled by declining overall production. What is the likelihood that the government is going to be willing to increase the expenditure on corn production supports, subsidies that amount to over 30% of the price paid to corn growers? What is the likelihood that the government sees an opportunity in higher corn prices to reduce expenditures on corn production supports?

There are other points to consider, but my dog needs a walk. In any case, there is enough here to tie up your bone(head) for a bit.

And rich.

And precisely the mentality that proves to me that this society, and most people for that matter, have no future in the coming power down.

Perhaps if the solutions we seek were based on morality and the common good there would be a glimmer of hope.

I wish all those that are 'Rich' in the current system of things all the best with their worthless piles of wealth in the coming era.

hand waving
n.
Usually insubstantial words or actions intended to convince or impress: resorted to hand waving instead of arguing rationally.

If all the poor in Mexico have to do is plant more crops, why don't aren't they doing just that? How nice that you've solved the problem of world poverty.

Also, I'd rather be enlightened and poor than rich and ignorant.

Hello Free. Nobody is answering your question so I'll try. It will be from memory and I will stand to be corrected by the collective wisdom present.

Well. The Mexican poor do not have land on which to plant. They did, but NAFTA fixed that.
After the last Mexican Revolution (Viva Zapata!) Mexico was surveyed and ejido lands (translated as corn and bean land) was allocated to every village. Each village gave land to each family. The ejido land was enshrined in the Mexican Constitution. By NAFTA time the Mexican population was much larger and usufruct of ejido lands was a bit altered but it was good land and still provided much of Mexico's caloric intake.
Note I said usufruct. Look it up. Nobody owned this land. Land cannot be owned, only usurped or used. Ejido lands were protected by the Constitution. They were absolutely inalienable. Didn't matter how much money you owed, didn't matter if you were ready to sell, felt greedy, the land was inalienable. If a family died out or all moved north, then the village gave the land to a new tiller. It could not be sold. Never. Period.
Now this was anathema to Milton Friedman and all his little disciples. Not merely heresy but a thought which could not be thunk. Doubleplusungood. Thoughtcrime. And efforts were made, endlessly over the century, to bring Mexican peasants into the 'real' world of free market fundamentalism. NAFTA did just that. The treaty abrogated the Mexican Constitution. Created a free market in land and opened the Mexican market to American corn. The results were predictable. Mexican farming is no longer about poor people feeding themselves and their families. The poor are not peasants any more. They are lumpen proles. They don't have land or the use of land. Domestic or imported they need cash to get corn.
I don't know if that's clear. The concept of land which is not owned is too weird for Americans. Totally counter to massive levels of indoctrination. And of course don't believe me, I may be wrong. Have at me.

Old Hippie - If the land was no longer under village control how, or to whome was it re-allocated?


What you appear to be describing sounds similar to Britain's transition from a communal commons based agriculture to an agriculture based on privately owned estates.


In Britain the better farmers, or the more wealthy farmers, or those who had inherited wealth, purchased or gained title to what had been owned in common. If similar process occured in Mexico then someone, or some social group became rich. Who benefited in Mexico's case?


Cheers!

I wish I had a good answer now that a harder question is posed. Like I said I'm shooting from the hip and working from memory. I have looked for answers & I'm looking in the wrong places. Was actually hoping someone would appear on thread knowing more than I do.
What I've read, many times in the years since NAFTA, rehashes the above , talks about how awful it is, and prognosticates horrors. I've no idea how much land has been transferred. Examples I've read are about hot real estate markets where a developer wants space for accomodating gringos.
As far as I know, the families who have traditionally cultivated a plot are now considered the owners. If the family is in debt or needs money for any contingency buyers are ready to take the land. Village input just dropped.
Yes it sounds to me like enclosure. Zapatistas were in some respect a millenary land-to-tiller cult that should not have prevailed in the twentieth century. And now that anomaly is reversed.

Take a look at this article from the UN's FAO. It seems to be a pretty good account of what's happened in rural Mexico, from the Revolution to the impact of NAFTA.

I don't doubt what you say. I was questioning Keithster100's simplistic answer that all Mexico's poor have to do is plant corn and grow rich. That was the reason for my sarcastic remark, "How nice that you've solved the problem of world poverty".