The Truth About Farm Subsidies

[SPEKTOR-AAA]

Something to ad to KX post.

DMI (Dairy Management Inc) recently has been promoting higher cheese intake by Americans. Mind you DMI is partially funded by USDA which also advocates against obesity. Anybody see the contradiction in that fight, as well as the massive amounts of wasted tax dollars. FML!!!

I just dont understand how there is seemingly no oversight to these wasteful programs in our country.

 

[nydj66]

What about the argument that we need to keep our food supply domestic is case of war or world-wide disaster? If you just let market conditions prevail, a lot of our food production would go to Mexico and South America.

 

[billfred]

I think the article, like most everyone here, does not understand much about farm subsidy program. Though I do think it is probably time to end it, let me outline what is was designed for and how it works:

* First - a farm is limited to $50k/yr maximum subsidy so forget all this, oh the farmer down the road is a millionaire from farm subsidies.

* Second - farms are required to set out a certain percent of their land (no crops) in order to receive the crop subsidy.

* The subsidy is based on the target price to obtain a good profit margin and the actual price of the crop. So the years that you have a spike in prices, you should receive zero subsidy (if market price hits target price)

* last part of the farm subsidy was to pay farmers to turn land that should have never been farmed back into grass land. This was a major conservation program and accomplished several major things 1) brought sloped and wet lands back to their natural state 2) greatly reduced surface erosion from poor farm land. Anyone who lived in west texas before and after this program knows how well it is working.

So summary, the farm program should phase itself out, if the farmers set out enough acreage, they commodity price should equal the target price. This is not quite happening for two reason 1) world wide trade 2) government keeps raising the target price.

So the real solution to this is to roll back the target price and let the subsidies phase out as designed.

 

[gotmilk]

ouch. I own two farms and trying to add a third.

 

[canadianhitman]

What about the argument that we need to keep our food supply domestic is case of war or world-wide disaster? If you just let market conditions prevail, a lot of our food production would go to Mexico and South America.

Great point. And to the point made about these subsidies hurting poor farmers in developing countries...I say...who gives a fug about some cotton farmer in West Africa?!?! You libs need to learn to look after your own first.

 

[EnderJE]

Great point. And to the point made about these subsidies hurting poor farmers in developing countries...I say...who gives a fug about some cotton farmer in West Africa?!?! You libs need to learn to look after your own first.

So you're saying to not let market forces control the outcome? If you let it, then the outcome will be to the lowest cost provider that the consumer is willing to pay for. The lowest cost provider is usually where the cost of production is low and there is no social net (ie third world), no?

 

[puddlemonkey]

ouch. I own two farms and trying to add a third.

pot farms don't count brah

 

[canadianhitman]

So you're saying to not let market forces control the outcome? If you let it, then the outcome will be to the lowest cost provider that the consumer is willing to pay for. The lowest cost provider is usually where the cost of production is low and there is no social net (ie third world), no?

That's right...I'm saying rig the game so that the third world doesn't continue to kick our asses the way they have been lately. Fucking China is manipulating it's currency to keep it low to make it's exports attractive as possible...so why can't the USA subsidize farms to keep that industry from disappearing overseas? Gotta do whatever it takes to keep the local economy churning...fuck playing fair.

 

[SPEKTOR-AAA]

That's right...I'm saying rig the game so that the third world doesn't continue to kick our asses the way they have been lately. Fucking China is manipulating it's currency to keep it low to make it's exports attractive as possible...so why can't the USA subsidize farms to keep that industry from disappearing overseas? Gotta do whatever it takes to keep the local economy churning...fuck playing fair.

Interesting...good point

 

[mrplunkey]

What about the argument that we need to keep our food supply domestic is case of war or world-wide disaster? If you just let market conditions prevail, a lot of our food production would go to Mexico and South America.

1) We're already so globalized in key areas (oil, clothing, electronics, medical devices) that a world-wide disaster would already interrupt a vast number of critical supply chains.

2) Letting food become a non-subsidized global commodity might actually spread production such that we're no longer as dependent on US production. What if the US had a catastrophic bug or disease for 1-2 years?

3) It wouldn't hurt us to diversity food, because a lot of the new trading partners could be in tropical regions, where we (the US) don't fare that well politically. Good trade makes for good relations -- it might actually help us bond.