Posted on 05/09/2002 2:49:42 AM PDT by 2Trievers
SPEAKING OF FARMING, last week the House and Senate passed a package of farm subsidies that increases federal spending on American farms by $71 billion over the next decade. Thats enough to buy every farm in America a brand new Lexus and still have change left over. Why is Congress doing this? Are Americans running out of food? Are we in danger of famine or starvation? No, American farm productivity has never been higher, and Americans have never been healthier or better fed. Well then, are these dollars going to help the suffering small farmer make ends meet? Nope. The bulk of these transfers goes to large agribusinesses. Significant portions even go to non-farmers who own cropland, such as billionaire Ted Turner and millionaire former Enron CEO Kenneth Lay. How about the starving children in the Third World? Will this bill help them? Nope, it encourages the destruction or non-production of some crops and raises prices across the board. So why is Congress throwing billions at businesses that operate farms? Because throwing money at farm companies buys congressmen votes. Economically, there is no sound rationale for transferring billions of dollars from non-farmers to farmers, or more specifically to large corporations that operate farms. Heck, large farm subsidies actually are an economic drain on the country and the world. They raise prices of agricultural goods for everyone, which further increases the amount taken from non-farmers and given to farming companies. And they spark retaliation from other countries, which raise their trade barriers and protectionist subsidies in return. To its credit, New Hampshires entire congressional delegation voted against the farm subsidies bill last week. If only New Hampshire could elect a few hundred more congressmen, federal farm policy might make more sense.
Thanks to foreigners. America is a net importer of all types of food (with the exception of cereal grains).
Carry, could you re-post the link to the information?
The data are from 1998, and the situation has deteriorated rapidly since then. I have not found a similar compilation of more current data. The principle causes of the trade imbalance are a combination of currency manipulation and the disparity in regulatory costs. FReepers who don't take it seriously haven't a clue what will happen when the currencies adjust (and should take a harder look at current dollar stability). The farmers won't be able to increase production to meet demand; they'll be gone. We'll pay a bundle more for food. We'll be dependent on foriegn food production (that'll make OPEC look like a laugher... think about depending upon Mexico to eat). The bankers who set this up will then have us all by the balls.
The imbalance is not a matter of farming efficiency. Urban whiners have no idea how much farmers "subsidize" them, primarily with paperwork for compliance to environmental regulations. Unfortunately, the issue is complex and takes not a little deprogramming to understand.
Right now, vegetables are so cheap that it doesn't make economic sense for an individual to raise a garden. (Yes, I understand there are other reasons for growing your own.)
But if the dollar falls drastically, we will once again see rural Americans creating "Truck Gardens", and trucking fruits and vegetables into the cities to sell. The republicans may get revenge on the liberals after all!
Nice tomatoes should be around $5 each, I think...
Don't worry, farmers will arise again if this happens.
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