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It's extremely complicated. One reason for keeping prices high this season is to prevent loan defaults from the farmers/producers in the fall. So one part of
by yajoe 13y ago
It's extremely complicated. One reason for keeping prices high this season is to prevent loan defaults from the farmers/producers in the fall. So one part of the federal government may spend another $40mil affecting the sugar market (high prices this season) to prevent a loan default of $100mil to different parts of same federal government and all of the fallout to those small businesses. Bankruptcy threatens families keeping their farms... as big of a deal as foreclosures for suburbanites.
The loans are based on a variety of factors and have a variety of goals from ensuring that family farms exist (and don't get gobbled by mega-farm corps) to ensuring that we grow certain kinds of crops in this country to ensuring we build better combines. It's very complicated and any 'narrative' that has a single cause or explanation is likely incorrect.
- newbie12 13y agoThe "family farm" defense of agricultural subsidies is dead wrong. In fact, most programs are price subsidies, so the more you produce, the more you benefit, and as a result most of the subsidies go to the largest producers-- we actually subsidize agribusiness over family farmers, relatively speaking. Further, the value of the subsidies gets capitalized into the land and makes it impossible for young farmers to get started in the business.