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Ag-grevation: Are crop subsidies rural welfare or a domestic investment?
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Week of February 23, 2005 CONVERSATION HIGHLIGHTS: "Ag"-grevation Are farm subsidies handouts for rural communities or critical investments vital to our agricultural system? In the wake of the President's proposal to reduce federal crop subsidies, many ETPers are wondering whether these subsidies are an outdated waste of money or an important federal program in need of reform. To members like Informant, who mourn the death of small agricultural towns, crop subsidies have saved both American agriculture and a uniquely American way of life. "As World War II was drawing to a close, in the aftermath of the Great Depression, my father saw devastation in the dust bowl of the prairies... [As a result, FDR gave] hundreds of thousands of farm families cheap loans and an opportunity to rebuild their lives. The formula worked both ways. It rebuilt rural America into a vibrant culture of small towns, schools, churches, and communities."(See Article) The problem, in Informant's opinion is not that the government subsidizes small farmers to insulate them from radical shifts in price, it is that it also subsidizes large farmers. These "corporate" farmers are able to collect subsidies and hold their products off the market until the most opportune moment to sell. According to this scenario, each price fluctuation forces more and more farmers out of business, allowing cartels to exercise ever greater control over food prices.(See Comment) Serena1313 thinks that the obvious solution to this problem is to restrict crop subsidies and other forms of financial support to smaller farmers, helping to create a balance which would benefit consumers. "I agree that subsidies should not go to the big farm industries, but for the lone farmers if they need the help, then YES! Otherwise [reform] may be just another way of getting rid of small farmers, thus opening more land for the Monsantos et al."(See Comment) TonyTiger, on the other hand, thinks that the small farms could be revitalized by offering a "New Homestead Act" which would draw Americans out of "the insane, overcrowded, not enough jobs cities like NYC and Chicago."(See Comment) Informant agrees that these are good ideas but doubts that there will ever be the combination of experience and political will needed to implement them. "Many of the Senators and Representatives from rural states are the people who have snuffed out the small farmers. Many of them own HUGE farm operations. Somehow...the low tax, Republican attitude is dominating the culture of rural America. Farmers are voting against the people that would bring money to their table."(See Comment) Not all ETPers agreed with Informant though, Chickmcd thought that the best way to support American farmers of all sizes was to end "welfare" to farmers and let "market forces" take effect. "Just like all other welfare programs that may have been created with good intentions. [Subsidies] create a dependence on that welfare system and the tax dollars it gives away. Why couldn't Americas farmers make more money thru growing and selling more of their products?"(See Comment) Also taking a laissez-faire position is AmericanOrgans, who believes that the problem is the Democratic party. "The Democrats that once saved the farmers are now out to ruin them. What side of the fence wants to protect the prairie dogs that are out there ruining crops and pastures? Who are the ones who are for the inheritance taxes, and higher taxes in general?"(See Comment) Informant responds that when small farmers go up against large farmers in an unregulated environment, large farmers control the "free market". Meanwhile, Beagle9 thinks that the small farm vs. large farm debate brought on by the problems with farm subsidies is only a symptom of a larger "values" problem. "We started abandoning our culture from our youth when seeking to not pursue the legacies built by our forefathers. We went in search of the easy life, the big city lights and said to ourselves to heck with working hard all our lives. Its been heading in this direction [and] it finally caught up with everyone."(See Comment) Serena1313 sees Beagle9's point but wonders if perhaps it is unfair to blame individuals for larger societal shifts. She proposes that even "rational actors" are often unable to see the long-term consequences of their decisions. This is why it is important for members of a society to help one another when things go unexpectedly wrong and to learn from collective mistakes. Since the forum for this process is the political process, it is critical that everyone be politically involved. As Serena1313 put it: "If we aren't, we deserve what we get!"(See Comment) One thing that all ETPers agreed on though was that in the last several decades radical changes have taken place in rural America and a way of life has begun to die. As Informant put it: "The subsidy programs were designed to support small farmers with families so that they could float. [But] the small farm and small community culture is gone. People think that they should just sell some of their land and they'll be rich. Wrong. It goes in a hurry...and it's not easy to sell something that you love so much."(See Comment) EXCERPTS FROM:Welfare vs. Investment- Informant |