Posted by paul on July 20, 2012 at 08:38:56 from (66.44.133.112):
In Reply to: New Farm Bill posted by WJD on July 20, 2012 at 06:58:20:
I think ag is important enough to people that it should have a strong backing by govt to help in natural, and especially govt-made disasters. And really, much of the farm disasters can be traced to the 2 grain embargoes from Nixon and Carter....
I'm not sure I really support what has evolved into the farm program of today.
most of it is welfare for town folk. Which isn't farm related.
The rest of it is evolving into govt subsides to insurance companies which provides insurance to remove risk from farming, which means lenders can lend to bigger and bigger farmers.Remove risk, and loans become easier to do. This pushes the natural progression of farms getting larger at an accelerated rate.
As well, the insurance is geared to pay out on per acre income, which means you plant a crop, if anything happens to it you _do not_ do anything to replant, or scramble to grow some kind of poor crop should you flood or dry out or hail out.
Meaning, the farm program now covers farmers well with insurance, but there is no incentive to keep trying to produce some grain.
In a year like this, the current farm program is very counter productive. We are short grain, but thr farm program is telling us not to try replanting, trying to grow some crop.
All in all, the farm program has evolved from subsidees to farmers, to providing subsidies to welfare town folk and insurance companies.
I don't think the USA taxpayer understands what they are getting, and I don't think they are getting a stable food supply from the current bill.
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