Farm subsidies: How effective are they? | IN 60 SECONDS

Do agriculture subsidies help boost an industry in danger, or waste government funds that could be better spent elsewhere? AEI's Vincent Smith gives his take.

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[joaovitormatos]

Farm subsidies exists for one and only one reason: to ensure farmer's votes in the next elections

Grew up on a farm. Freeze subsidies now so that inflation will wipe them out and force agriculture to be competitive. Sowell has a lot to say about farm susidies that deserves a read.

[FireweedFarm]

Subsidies blind us to the real story of how & why farmers have opposed subsidies. In fact, in the 21st century, US Net Farm Income (including subsidies) has averaged less than 74% of what it was during the New Deal years of 1942-52, (when no subsidies were needed & none were paid after 1944) (USDA-ERS). For the biggest (subsidized) crops, we had the lowest prices in history 1997-2005 (and later). 8 of the 9 lowest for corn and soybeans. Most farmers have gone out of business over the decades since 1952. So paradoxically, to survive you generally needed a much higher off-farm (household) income. Farm income was close to 50% of the off-farm of these households in the early 60s, but recent survivors have had only 20% or 10% or even 5% farm share, with prices often below full costs since 1981. So farmers subsidize everybody else more than taxpayers subsidize them. New Deal minimum farm Price Floors were reduced (1953-95) then ended. Free markets chronically fail for agriculture on both supply and demand sides, so prices fell. Bigger farms, (mentioned here, ) had bigger reductions (not mentioned). (See "Brad Review of Winders 4" here at YouTube.) Subsidies were added in the early 60s, 77 (rice) 82 (oats) 98 (soybeans) but farmers got less because price floors were lowered more. I have videos showing the data. Via below cost prices farmers massively subsidize agbiz/CAFOs/foreign buyers, consumers (none mentioned here, ) as the U.S. lost money on exports, causing massive damage here and abroad. Subsidies don't cause the free market failures. Numerous studies show how price floor programs with no subsidies are much better. Big industries all manage supply for profit. Farms are small, & need price floor/supply management programs.

[pierrepero]

I live beside a flood plain that flood more springs than not - but Ive wondered why the fields on the flood plain are always some
of the first to be planted in the area. So all to often the fields have to be replanted. Is there such a thing as farming the insurance payment ?

[MrBluehound]

I am a farmer who lives in Nebraska, and I agree. But you are missing something. Why do they exist? From 2006-2013 farm income reached record levels ...and do you know what happened to farm subsidies during that period? They INCREASED! What is really going on? The farm subsidies are actually a bribe to farmers to "play ball" with government regulations and record keeping programs. This includes environmental regulations on things like drainage tile or tillage practices. The government can't tell you how to farm or dictate what you can or can't do with your land....unless you are taking the payments....then they can. When farmers were making "fuck you" money they needed to make the bribe large enough to entice people to keep playing ball. Farm subsides don't exist for the benefit of farmers, they exist to manipulate those farmers into submitting to government regulation. And its an amount of money that you can't walk away from if all your neighbors(competitors) are taking. Things were so out of control during the time period mentioned above that farm land prices here increased 300-400% during that period.

[paintballthieupwns]

Less farmers feeding more people. And it's a fact worth making a point of that their incomes on average are going up? Make your point about the subsidies without the pointless drivel

[richdobbs]

This situation shows how how much trouble we are in. You've got subsidizes that at best can only benefit a small fraction of the populace and a small number of businesses, yet they survive. On top of this consider the multitude of other distortions in the economy from larger constituencies. Are we doomed?

[alikaostermiller]

should we really get rid of them entirely or change them to stop environmental damage and abuse? like you get the normal subsidies if you use good farming methods and dont abuse the land.

[andresd.]

how elections have an effect in economy?

[electricman]

Farm subsidies are for the rich they're not living in shacks and driving old vehicles all farmers are millionaires and billionaires