Wednesday, February 13, 2008

Farm Subsidies

After reading the information on websites both for and against farm subsidies, I have decided that we need a new program that will support modern American agriculture. Farm subsidies were developed in the Great Depression era, almost eighty years ago. Since then, the world has changed, especially American agriculture. We are no longer the Jeffersonian vision of a family farmer with twenty acres solely living off the fat of the land. That vision died at least a century ago. Agriculture is now more of a bussiness than anything. An American farm-owner is probably more likely to be seen in a suit rather than overalls. The family farm has been morphed into a huge corporate money-making machine, that left most of its values in the dust. Farm subsidy money is largely being granted to rich corporations. The family farmer is practically extinct in America, why should taxpayers fund a program that was geared towards him? American farms may flourish if subsidies are reduced, but we do need a program that will protect them if the market becomes saturated or if a natural disaster strikes. This is why farm subsidies need to be changed or put to an end all together.

If subsidies are vanquished, it will lead to a free market, this may not be a bad thing. Capitalism, America's founding virtue, will be set free in the agriculture sector of the United States. Product quality will be the determing factor in whether the consumer purchases, rather price. Subsidized farmers have to conform to regulations, rather than produce their own amount of food. Competition amoung farmers will lower prices for the consumer, rather than government regulations.

But what if severe weather strikes, and diminishes our food supply in a free-trade style of agriculture? This is where farms need the government's support. The government should support farmers by offering them the resources needed to get back on their feet. The small portion of the huge amount of money used to subsidize farmers should be put into a mutual fund of some sort - invested back into our own economy. Then, when our farmers (our food supply) is in dire need, we will have the capital to fund their recovery. Some members of congress have already started looking into farm insurance (www.taxpayer.net/agriculture).

The government should also be concerned with agriculture if the market becomes saturated. If an overabundance of food becomes a problem for farmer's prices the government should buy up some of the extra food, thus giving the farmers a fair price for their crops.

But subsidies should not be done with altogether. President Bush signed a bill that limited subisdies by only giving to farmers whose income was under $200,000. But the Agricultural Commitee wants to set the cap at a ridiculous $1 million annual salary (http://www.heritage.org/Research/Agriculture/wm1566.cfm). An annual salary cap must be set at a reasonable price - around the average American salary. This much needed cap keeps the rich farmers from recieving money that they do not need. But farmers do need the governments help in an uncertain world. But to constantly give to farmers who do not need the money is a waste of taxpayer's capital; capital that could be used to buy extra food.

1 comment:

  1. "Jeffersonian Vision"?

    Very nice. I'm impressed. That being said, I have a tendency to like people's viewpoints when they coinside with my own.

    Extremely well written.

    ReplyDelete