Wednesday, May 14, 2008

Food Subsidies to the "Poor" Farmers

Guess what it is time for a new farm bill. And guess what, they have subsidies for farmers. Legislators advise that any farmer whose adjusted gross income is above 750,000 dollars will not be eligible. Major reform, we are not just subsidizing the poor farmers, the ones that don't make close to one million per year.

ARE YOU KIDDING ME?

The arguments;
1. Europe subsidizes their farmers even more. Okay, lets let Europe pay their farmers to go food for us. That works for me.
2. Farmers have a lot of equipment/expenses. Guess what, most farmers incorporate their business. Their AGI , adjusted gross income, is what a farmer gets paid by his corporation, after the bills have all been paid, and after his personal exemptions and deductions have been made. So guess what, I wish I had an AGI so the government wouldn't send me any more subsidies. Oh wait, they don't send me any subsidies. I have a small garden.
3. We don't want farmers to go out of business and depend on foreigners to supply food to us -- just like oil. Guess what, subsidies do not make our farm industry stronger. Over the long term, subsidies make it weaker. It keeps the weaker farmers from going out of business. It is also an industry that can ramp up and ramp down as required in a reasonably short period of time. In short, as an industry, it can adjust just like other industries. And guess what, many Americans have the option of planting gardens; we are not helpless, or perhaps, I overestimate us? Food is not like oil with a limited supply that is controlled by a few people on the planet. It is a stupid argument recently made by the sponser of the agriculture bill before congress now.
4. Poor farmers need the help. The help does not go to poor farmers; poor farmers don't have lobbyists, duh.

And finally, we are already indirectly subsidizing farmers. It is called "ethanol". ADM, Archer Daniel Midland, a big farm corporation is mopping up. I own the stock, I have held it for ten years waiting for this point in time. Its great for me and the big farm companies in this country. It is not clear to me who else it is good for. It is not really lowering our energy costs which are being offset in part by higher food costs. And of course, they don't help the Brazilians that make cheaper ethanol than us from sugar cane but that are not allowed to sell here without paying a tariff. It doesn't help anyone except the farm companies and the lobbyists that support them and the politicians that pay off the lobbyists / supporters with laws such as these. Farmers, lobbyists, politicians its a threesome that we are not part of -- no fun or profit for us.

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