They go to make corn and soy beans, much of which is converted to fuel or exported.
Like you said it is a direct wealth transfer. Being in the industry is a lot like being a defense contractor. The same people receiving tens of thousands of dollars from the federal government complain about blacks buying grapes with Food Stamps.
In Iowa we are still less radical than North Dakota. Almost everyone one of my in laws relatives have dumped on my in laws for voting Biden.
In Iowa our food prices have been pretty stable. Actually I am a little shocked as we leverage the specials to get good deals. It could be the basket of our goods (skinless chicken breast, sirloin steak, and shrimp being our most expensive items). We have specials all the time on eggs and milk. Grocery store prices are usually the same or lower than the Farmers Market, but we buy from the FM when we can as we try to spread our purchases around to the smaller growers.
My mom's food in Florida is probably 10 to 20% more than ours in Iowa.