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December 21, 2006
"Federal Subsidies Turn Farms Into Big Business"

Posted by Bill

The WaPo takes a whack at farm subsidies:

The very policies touted by Congress as a way to save small family farms are instead helping to accelerate their demise, economists, analysts and farmers say. That's because owners of large farms receive the largest share of government subsidies. They often use the money to acquire more land, pushing aside small and medium-size farms as well as young farmers starting out.

"Historically, when you think of family farms, you think of Mom and Dad and three generations working a small or mid-sized farm. It gives you a warm and fuzzy feeling," said Alex White, a professor of agricultural economics at Virginia Tech. "In the real world, it might be a mid-sized farm. But it also might be a huge farm. It might be a corporation."

Large family farms, defined as those with revenue of more than $250,000, account for nearly 60 percent of all agricultural production but just 7 percent of all farms. They receive more than 54 percent of government subsidies. And their share of federal payments is growing -- more than doubling over the past decade for the biggest farms.

Aside from the implication that the way subsidies are distributed is the problem, rather than the breadth and existence of subsidies themselves, it's a good article.

"If the purpose of farm policy was to save the family farm and help stabilize rural communities, then it hasn't worked," Oswald said. "What the government is really doing is subsidizing land and assets, not people."

Funny how that ends up ...

Posted by Bill at December 21, 2006 03:57 AM | TrackBack (1)

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Comments

Well the answer, obviously, is to have a benefit concert. Stars and city folk get a feelgood, conservatives get condemned and nothing changes. Win-win.

Posted by: Gordon at December 22, 2006 09:50 AM