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The interactions are complicated. Government subsidies on many agricultural commodities guarantee a price floor, but that's little comfort to farmers whose live
by niftich 8y ago
The interactions are complicated. Government subsidies on many agricultural commodities guarantee a price floor, but that's little comfort to farmers whose livelihoods depend on being able to sell at prices considerably higher. As with many things among actual people, the comparative differences are significant: if you can sell more for more money and have spent less money, you win much more so than your neighbors who've overspent and ended up with less profit.
Conversely, a massive, diversified corporation can better weather local circumstances than a farmer running a smaller operation. This favors further consolidation, as individuals get ruined and or want to exit the space, or they move towards higher-margin products. Current purchasing tastes favor high-end produce to be close to its consumption, so pivoting to Organic in Kansas may not pay off nearly as much as in New York, Illinois, or California.