Posted by Paul on February 01, 2014 at 14:33:51 from (66.60.223.232):
In Reply to: Farm Bill thoughts posted by rrlund on February 01, 2014 at 09:07:57:
One pen swipe and the govt can kill the grain market, as Nixon and Carter both did. It took until the drought of the late 1980s to recover from that, the damage done to rural America.
As well. A safety net for disaster will help keep a more diverse, strong rural ecconomy and crop and food prices. It doesn't need to be what we have, and sure doesnt need to be what we had a few decades ago, but some sort of safety net, which would compare to the subsidies other industries get, or compare to the labor regulations and minimum wage laws workers have, seems to be a good idea?
The farm program will break down into the chart I hopefully can post here.
Note that less than 5% of it goes directly to farmers.
Less than 10% of it goes to insurance companies which does help farmers, but doesn't go to them directly. Farmers need to add more money in order to get anything from this, and they are private insurance programs not a govt pile of money. The govt just pays part of the premiums is all.
And about 6% goes to hunting and wildlife and tree hugging groups in the form of renting poorer land from farmers to create wildlife habitat. Now setting aside this land out of crop production does help keep ag prices up a tad, but again the money comes with a lot of strings to plant and maintain a special crop of approved native habitat, and control weeds. It is not free money to farmers, it gives access to the hunting and save the planet folks.
The big blue part is what goes to food stamps/ snap/ school lunches/ etc to subsidies the poor. Not to farmers.
So when you bad mouth the whole deal and you certainly may, be sure you understand what money you are talking about, and who you are really after?
As to what is in the program for farmers specifically, it is a 500+ page document, we likely don't have a clue. And, while both the house and senate passed it, they are different versions so it is still far from official, they need to compromise it together yet.
Big business and big govt has said for years they prefer an insurance program over disaster payments so they can budget easier for them, so that is what we are getting. More crop insurance subsidies, less of all the other types of programs.
Remember now, the blue area goes to poor people welfare, the green portion goes to farmers, tell us again where the problem is and where the money disappears to?
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