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hardnox604008
Advisor

thinking about cheap food and crop insurance subsidies

I know I'm struggling with this Econ 101 thing that all you guys have down pat but I've been thinking about the argument about how we must have unlimited crop insurance subsidies in order to produce cheap food.

 

the more I think the more I conclude that it is a really fascinating melding of populist rhetoric and corporatism that must get thrown out at Farm Bureau policy meetings in order to make all present feel righteous. Or something.

 

I'll submit that if crop insurance subsidies were capped at some realtively generous number, very, very few acres would go unfarmed. At the margin it might be somebody different farming them, though.

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5 Replies
BA Deere
Honored Advisor

Re: thinking about cheap food and crop insurance subsidies

First of all I would favor caps on crop ins and all money coming from the gov. However the reality of farming today is big big big, combines cost $300,000 and to run ten of them abreast across acres in the fringe areas where out of 10 yrs , 5 are duds to keep that land in crops, lenders need their hindends covered. Or that land would revert back to pasture and with their perennial droughts and 4 foot snows even that is ify in today's world. 96 million corn acres drives down price too much anyway you cut it and if the fringe gets a bumper crop? Bar the door Katey, prices in the basement!
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kraft-t
Senior Advisor

Re: thinking about cheap food and crop insurance subsidies

End the insurance subsidies and let the market work it's will. It's just like Obama care in that it is subsidizing insurance premiums for those least likely to buy it  If Joe blow wants to farm the desert let him pay that $100 per acre premium or take the risk himself. Why should people that bought land in nirvana subsidieze those that didn.t.

 

That basically is the same argument that people are using against Obama care. Why should I pay for that?

 

However single payer would be like medicare in that every body is paying the price. Some by 50 years of paying in before they have a claim and others will have a claim next week and lower costs means that the premiums nor the claims bankrupt you.  I think the reason we don't have it already is because some folks  areoverly concerned that somebody night get something for nothing. In truth they won't get if for nothing.if they engage at all in the economy.

 

High risk acres shouldn't be farmed. They should be used for livestock production or other more suitable cropping..

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sw363535
Honored Advisor

Re: thinking about cheap food and crop insurance subsidies

Money for nothing ......................

It's America everyone is entitled to a standard of living. ---- keep printing.
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sw363535
Honored Advisor

Re: thinking about cheap food and crop insurance subsidies

Kraft thanks for that utube music idea. Getting my Atkins/ knofler memories back.
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Kay/NC
Honored Advisor

Re: thinking about cheap food and crop insurance subsidies

This is an interesting sort of analogy...ACA and crop insurance.

Dr. Phil had a woman on yesterday, a textbook case of Munchausen. She had learned to culture bacteria from fecal matter and other sources, and among other charming habits, injected her own surgical wounds with syringes full of her science experiments. Of course, she had no health insurance, but had run up a conservative $4-5 million in bills, since 2000 alone.

Now, you say, no sane person would do such a thing. The most telling comment was that " you have essentially wasted close to five million dollars, just to get people to pay attention to you." Yes, in a nutshell...and others - taxpayers, hospitals and other patients - have to carry off her costs.

Now, return to the analogy. How many millions are thrown at " farming" the wrong crop in the wrong place? How much are taxpayers and other farmers expected to carry off for people who just farm insurance, year after year?. Isn't THAT crazy, too?