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In my country (Oz) it's the same story. Families who've owned properties for generations can't keep up with the mega-corp style of farming, particularly when dr
by cmroanirgo 7y ago
In my country (Oz) it's the same story. Families who've owned properties for generations can't keep up with the mega-corp style of farming, particularly when drought, or other semi regular calamity hits. A mega Corp can go into 'the negative' during these times, but only really experience a 'blip' on the balance sheets. A family farmer will have a 2nd/ 3rd mortgage rejected, when only a generation or two previously they had no debt whatsoever.
Governmental help comes in the form of lacklustre subsidies, or too small and too delayed financial aid, while at the same time providing massive grants to companies that are in the agri business system.
One example is the legislation of allocating "water rights" to the main river systems here, all of which has caused farms to go bankrupt, the middle men to get rich and we now have increased rice (!! Rice in Australia) production.
- bsanr2 7y agoSounds like it's still a problem with farm subsidies, just that they're not going to ALL farms?
- taneq 7y ago> Families who've owned properties for generations can't keep up with the mega-corp style of farming You'll notice that families who've been cobblers for generations can't compete with Nike on price, either. Economies of scale and international wage arbitrage really matter.
- WalterBright 7y agoOn a grand scale, it's the same with car companies. People have started car companies (Tucker, Bricklin, DeLorean, Tesla), but they usually underestimate by a factor of 3 or more how much money it really takes to do it.