Did You Know That The U.S. No Longer Has Any Strategic Grain Reserves At All?
Once upon a time, it was popular to say that the U.S. government only had enough wheat stored up to provide everyone in America with half a loaf of bread. But that is not true anymore. Recently, I discovered that the U.S. does not have any strategic grain reserves left at all. Zero. Nada. Zilch. As you will see below, the USDA liquidated the remaining reserves back in 2008. So if a major food crisis hit this country, our government would have nothing to give us. Of course the federal government could always go out and try to buy or seize food to feed the population during a major emergency, but that wouldn’t actually increase the total amount of food that was available. Instead, it would just give the government more power over who gets it.
The U.S. strategic grain reserve was initially created during the days of the Great Depression. Back then, the wisdom of storing up food for hard times was self-evident. Unfortunately, over time interest in this program faded, and at this point there is no strategic grain reserve in the United States at all. The following comes from the Los Angeles Times…
The modern concept of a strategic grain reserve was first proposed in the 1930s by Wall Street legend Benjamin Graham. Graham’s idea hinged on the clever management of buffer stocks of grain to tame our daily bread’s tendencies toward boom and bust. When grain prices rose above a threshold, supplies could be increased by bringing reserves to the market — which, in turn, would dampen prices. And when the price of grain went into free-fall and farmers edged toward bankruptcy, the need to fill the depleted reserve would increase the demand for corn and wheat, which would prop up the price of grain.
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