Please Scroll Down to See Forums Below
napsgear
genezapharmateuticals
domestic-supply
puritysourcelabs
UGL OZ
UGFREAK
napsgeargenezapharmateuticals domestic-supplypuritysourcelabsUGL OZUGFREAK

The Truth About Farm Subsidies

javaguru

Banned
As with most fed programs a bad idea.....

reason.tv - Videos > Agricultural Subsidies


"The government is bailing out the banks...but who's going to bail out the government?" asks Texas cotton farmer Ken Gallaway, a vocal critic of agricultural subsidies that cost U.S. taxpayers and consumers billions of dollars a year in direct payments and higher prices for farm goods.

Agricultural subsidies were put in place in the 1930s during the Great Depression, when 25 percent of Americans lived on farms. At the time, Secretary of Agriculture Henry Wallace called them "a temporary solution to deal with an emergency." Those programs are still in place today, even though less than 1 percent of Americans currently live on farms that are larger, more efficient, and more productive than ever before.

Consider these facts. Ninety percent of all subsidies go to just five crops: corn, rice, cotton, wheat, and soybeans. Two thirds of all farm products—including perishable fruits and vegetables—receive almost no subsidies. And just 10 percent of recipients receive 75 percent of all subsidies. A program intended to be a “temporary solution” has become one of our government’s most glaring examples of corporate welfare.

U.S. taxpayers aren’t the only ones who pay the price. Cotton subsidies, for example, encourage overproduction which lowers the world price of cotton. That’s great for people who buy cotton, but it’s disastrous for already impoverished cotton farmers in places such as West Africa.

U.S. farm programs cost taxpayers billions each year, significantly raise the price of commodities such as sugar (which is protected from competition from other producers in other countries), undermine world trade agreements, and contribute to the suffering of poor farmers around the world. It’s bad public policy, especially in these troubled economic times.
 
Java this stuff is frustrating. People bash low income welfare recipients but dont realize the huge 1000 acre rice farmers down the street receives tons of money. What is a solution to something as dysfunctional as this?
 
Java this stuff is frustrating. People bash low income welfare recipients but dont realize the huge 1000 acre rice farmers down the street receives tons of money. What is a solution to something as dysfunctional as this?

Lack of federal government involvement...

The market has always sorted itself out....in spite of attempted government control....reference the Soviet Union.
 
Interesting. Where I live most of the area is agriculture specifically rice farmers. Would the elimination of these subsidies put these farmers out of business?
 
Interesting. Where I live most of the area is agriculture specifically rice farmers. Would the elimination of these subsidies put these farmers out of business?

Maybe and maybe not...depending on the farmer and their practices. Regardless, government subsidies creates an overallocation of capitol in subsidized industries that would be better allocated elsewhere. At the end of the day, why is my tax money going to subsidize ADM?
 
Last edited:
Ugghh b/s over 43+% of ADM profits come from products subsidized by us. I don't even understand how we allow it to happen. It must be that people really just don't understand or something.
 
For once I totally agree with Java.

Agricultural subs need to be abolished, in Australia, too.














b0und (2 cents)
 
Cessation of subsidies will result in acute, but transient, adverse consequences. Suddenly people who always relied on payments irrespective of market values or their level of (appropriate) productivity will lose income. Some concerns no doubt will go broke.

Subsidized farmers who've been growers for 40+ years are going to struggle to adapt. Abrupt cessation would no doubt be unfair to them. We're talking 2nd and even 3rd gen subsidized farmers here. An explicit, well publicized plan to slowly phase out government payments needs to occur. Smart, flexible enterprises will adapt and diversify.
 
Cessation of subsidies will result in acute, but transient, adverse consequences. Suddenly people who always relied on payments irrespective of market values or their level of (appropriate) productivity will lose income. Some concerns no doubt will go broke.

Subsidized farmers who've been growers for 40+ years are going to struggle to adapt. Abrupt cessation would no doubt be unfair to them. We're talking 2nd and even 3rd gen subsidized farmers here. An explicit, well publicized plan to slowly phase out government payments needs to occur. Smart, flexible enterprises will adapt and diversify.

+1

But the above post should be fill-in-the-blank style. Then several versions should be issued including:

1) farmers
2) welfare recipients
3) social security recipients
4) medicare/medicaid recipients
5) oil subsidies
6) public education

...

But I love the post and idea!
 
The whole thing is corrupt from front to back. And did anyone mention the manipulation of crops by the Fed (i.e. paying a farmer to NOT grow a certain crop in order to create a shortage/keep price up)? Yes, it happens with anything from corn to soy beans.

The only thing that they offer, which I can say is real help to promote farming without unfair manipulation, is the Williamson Act in CA. We are considering it, as it will help a little to level the playing field between our avocados and the imported ones from Chile and Mexico. Williamson Act Program - Basic Contract Provisions There are a few major drawbacks to signing up for it, but those same drawbacks actually protect from abuse. In other words, I can't sign up, get a huge property tax reduction, and then open a non-farming business and get rich, or put up a bunch of buildings and rent them out, etc.

The other thing that really helped us out in 2007, was the IRS allowing us to spread our loss from the Great Socal Ice Storm of 1-2-2007, over 3 years. We lost $250,000 in crops, plus all the trees were killed and thus NO crops 'til a tiny crop this year, and all of our plumbing was destroyed and had to be completely replaced. Even the backflow and fertilizer injection systems froze and smashed up. No insurance, but the tax break was a little help at least. I hope that REALLY WAS a 1000-years anomaly. It was the coldest temp ever recorded in an coastal county in California since records were kept in the mid 1800s, by far. In Somis where we are, it was 7 degrees for 5 hours, and never got above 15 degrees until later the next day. In a typical worst-case winter night, it might get down to 29 for a couple hours, then heat right back up long, LONG before anything gets killed or explodes from water freezing in pipes. Normally it never gets below 32 whatsoever, and seldom below 40 at night in the winter.

Charles
 
Top Bottom