Reply #12: Just keep in mind, RE: Ag cut

[pipoman]

Farm subsidies are payment for government control of private enterprise. Subsidies pay farmers to grow specific products in specific amounts. Without subsidies, farmers, as other business owners can and will grow what they want in what ever quantities they want, just as you would do in their position. The government tells farmers to grow x number of acres of x product...in return we will insure that the price for your product will be $x. This system makes overall farm production predictable. Without such a system, farm product consumers are at the mercy of quasi farm cartels. If, for instance, corn prices dropped due to a glut this year, next year the corn growers association would strongly urge corn growers to reduce production next year, driving the price up, resulting in the same or greater profits for producers with less work and less up front expense in seed, fertilizer, fuel, and equipment costs...it would be a no brainer from a producer standpoint.

Another function of subsidies has been soil conservation and wildlife management. The references to 'paying farmers not to grow', refers to programs like the CRP program. This program pays a similar rate per acre for land which must be planted into high quality forage capable of supporting a variety of birds and other wildlife. Additionally, CRP grasses renew the soil. Without those programs, farmers will farm every acre of their ground, 'from ditch bank, to ditch bank' as they used to say.

Expect dramatic price fluctuation in farm commodities and increased costs of fulfilling trade agreements with other nations..this alone may exceed the cost of subsidies. The US makes multi-year agreements for trade of ag products with other nations. Those agreements have set quantities and prices. Without control of production, these contracts will be at the same place consumers will be..that is not knowing the volume of production. A year which is a low production in attempt to raise prices could cost our government a ton of money to fulfill the existing agreements.

People not near the farm industry often are clueless about the costs and risks associated with farming. It is a very expensive business wrought with potential pitfalls. Farmers will survive without subsidies.