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> Even still giant subsidy’s keeps the farm sector from the kind of massive consolidation you see in most industries. The bulk of the massive subsidy received
by randomdata 8y ago
> Even still giant subsidy’s keeps the farm sector from the kind of massive consolidation you see in most industries.
The bulk of the massive subsidy received by farms is crop insurance premium assistance though. No doubt a huge benefit if you have a weather disaster, but not anything you see directly until you have a disaster, and that only provides stability in those freak years. I am not sure that alone is keeping farms from consolidating like other industries as most other industries don't have the same kind of instability from the weather.
I would argue that in North America mega-farms, by and large, simply cannot compete with smaller farms. It takes farm expertise to run a farm and one person can only manage so much. Hiring more people with farm expertise is exceedingly difficult as anyone who has farming expertise would prefer to have their own business.
If your thing is developing search engines, chances are you're going to have to align yourself with for Google or Microsoft for the network advantage. You have almost no chance of succeeding on your own in the search engine space at this point. But food is quite different. If you produce food, there is guaranteed to be a buyer for it. There is no real network advantage to working for someone else there like you see in other industries, so why let someone else take their cut off the profit of your labour?
- Retric 8y agoCrop insurance is 8.5 billion out of $23 billion in subsidies directly given to farmers. Divide by 3.2 million farmers and that’s 7,200$ per year each.
- deleted 8y ago[deleted]