E15 is here

[2ndamendment]

Originally Posted by mcjaredsandwich

A little bit, but not much. Subsidies keep the farmer in business. Without them, we would be paying much more in food cost. We only pay about 10% of our budget on food. Many countries that do not have govt subsidies for farmers pay over 30%, many close to 50%.

Why government is involved in agriculture?
1. Ensure adequate food supply
2. Protect small scale farming
3. Maintain economic viability of rural businesses and communities
4. Minimize dependence on imports
5. Expand agriculture exports
6. Respond to food problems

These days a farmer does not have to grow anything to get federal crop subsidies. The government will send a check based on the amount of product that was grown in the past, even if the farmer does not feel like growing it anymore.


The govt buys the crop at a minimum price, assuring the farmer gets paid. If the crop sells for more than what the govt bought it for, the farmer pays back the govt and keeps the profit. If it sell for the same price, or lower than what the govt bought it for, the farmer hands over his entire crop to the govt.

Government involvement increases the price at the grocery, while going through billions of tax payer money.
In addition, farmers have more accumulated wealth than most urban people in the form of land value.
For most commodities (such as fruits and vegetables, hay, meat products, ornamentals) there is little government income support. Not only that, but the commodities that get no government help are just as profitable as those that do.


The problem is that we export so much food. Europe and Asia love our grain. But, they also pay for it.

Sure, ethanol is from corn. But its also from sugarcane, and any other crop that can produce alcohol (rice, wheat, etc).

What is the rationale for government involvement? Instead what would be the best way government could provide support other than income support?

Here is a quote by Thomas Jefferson;

[SIZE=3]"Were we directed from Washington when to sow, and when to reap, we should soon want bread." --Thomas Jefferson[/SIZE]