31 January 2009

End Agricultural Subsidies

Watch this clip from Reason TV:



Among others, Dan Sumner (UC Davis) slams subsidies that waste resources, distort farming decisions and keep too many farmers MBAs in the farm business. But let's not just end subsidies, let's also kill the Farm Bill!

Bottom Line: Good farmers grow food to stay in business; bad farmers need subsidies to do so. Make farming a real business.

1 comment:

Philip said...

One point this otherwise excellent piece misses is that the subsidy system, by socializing crop and market risk, has greatly inflated land prices and rents. Farmers do not benefit from these; in fact both land and rent are input costs. Banks, absentee landlords, and counties who rely on property tax do.