What do you think about farm subsidies?

Question

What are your thoughts on farm subsidies? I know that about a month ago Congress passed a huge farm bill with many subsidies to farmers. What do you think about it? I know its old (well the story is kinda old) but I just want to hear your thoughts on subsidies for farms in general. I like to hear both sides.

Answer 1

Farm subsidies is one of my favorite topics to write on :)

I am very much against farm subsidies.  I think that they at best inefficient and at worst harmful.  There are places in Africa that have a climate and structure such that they can produce cotton for one third of the price of American farmers, yet they get put out of business because American subsidies drive the prices so low.  I read somewhere that every $1 we give to Africa in foreign aid is more than offset by the harm done by our farm subsidies.

Another, related, negative effect of our farm subsidies is that they have helped stall the Doha round.  Basically the situation is that the US and EU want the developing countries to lower their tariffs on industrial products, but they won't do it until the US and EU reduce/eliminate their farm subsidies, but the US and EU want to keep their farm subsidies, so the negotiations, for the past 6 years, have gone nowhere, even though the point of this trade round is to make things more favorable for developing countries.  The WTO has ruled US farm subsidies illegal, but we don't really seem to care.

One necessary problem with farm subsidies is that the government has to choose which products to subsidize, and, from a health standpoint, they haven't done a very good job.  Two heavily subsidized farm products -- corn and soybeans -- are used in very unhealthy foods, while foods like carrots are not subsidized at all, so for a poor person who is looking to maximize their food per dollar, subsidies encourage them to buy unhealthier products.

Some particular problems I have with this particular farm bill are that subsidy payments are linked to today's agricultural prices, so that when prices fall, the subsidies will increase to make up for it.  Another problem is that despite the oft-cited explanation that subsidies are to protect the family farm way of life, ~80% of the payments go to ~10% of the farmers (see graphic in the Economist article).

Answer 2

I hope you don't believe you should pay taxes to subsidize farmers while your own plate is empty.  That's theft, that's immoral.

Meanwhile Congress hasn't balanced a budget in years, and run the national debt to an impossible record, and allows the Fed to inflate our dollars, to pay subsidies... for anyone?

So think I

Answer 3

Farm subsidies simply allow unprofitable farming businesses to remain in business for political gain. Subsidies are foolish and should be halted.

Farms who succeed will be rewarded and those who fail will need to get 9-to-5 jobs like everybody else.

Answer 4

Farm income is at record highs.

The price of farm land is at record highs.

Crop prices are at record highs.

Contributions to candidates from agri-business are at record highs.

Any more pieces of the puzzle you need?