SMRs and AMRs

Wednesday, March 02, 2011

Don’t End Agricultural Subsidies, Fix Them

By MARK BITTMAN
NYT

Agricultural subsidies have helped bring us high-fructose corn syrup, factory farming, fast food, a two-soda-a-day habit and its accompanying obesity, the near-demise of family farms, monoculture and a host of other ills.

Yet — like so many government programs — what subsidies need is not the ax, but reform that moves them forward. Imagine support designed to encourage a resurgence of small- and medium-size farms producing not corn syrup and animal-feed but food we can touch, see, buy and eat — like apples and carrots — while diminishing handouts to agribusiness and its political cronies.

Farm subsidies were created in an attempt to ameliorate the effects of the Great Depression, which makes it ironic that in an era when more Americans are suffering financially than at any time since, these subsidies are mostly going to those who need them least.

That wasn’t the plan, of course. In the 1930s, prices were fixed on a variety of commodities, and some farmers were paid to reduce their crop yields. The program was supported by a tax on processors of food — now there’s a precedent! — and was intended to be temporary. It worked, sort of: prices rose and more farmers survived. But land became concentrated in the hands of fewer farmers, and agribusiness was born, and along with it the sad joke that the government paid farmers for not growing crops.

(More here.)

1 Comments:

Blogger Minnesota Central said...

FYI : WSJ weighs in
http://online.wsj.com/article/SB10001424052748704587004576245093010870216.html?mod=WSJ_newsreel_politics

I thought that Ryan's budget cuts did not hit the Ag subsidies enough ... and WSJ proves the point "seeking to cut $30 billion over a decade—starting when the next farm bill is passed in 2012—out of a total of some $150 billion in total expected spending on farm subsidies."

Considering the record prices, production capabalities, and demand, there is no logical reason to continue to provide $120 billion for large agri-business.

7:21 AM  

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