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October 20, 2011 / 74

Who REALLY benefits From Farm Subsidies?

It’s certainly not the Farmer! Although the farmers get the government checks (which they have to pay taxes on), it’s the MEGA-AG corporations like ADM and Cargill and Monsanto that get the benefits.

Corporations like Monsanto get benefits because they can continue to sell the farmers chemicals and genetically modified seeds which, without the subsidies, the farmers wouldn’t be able to afford.

ADM and Cargill get the benefits because such subsidies allow them to buy the farm products (corn, beans, hogs, etc) at BELOW PRODUCTION COST!

If it costs a farmer $6 a bushel to grow corn, then the Mega-Ag corps would have to pay over $6 or the farmers wouldn’t sell lest they go broke (and have to move to the city and get an hourly job).  So prices paid by the Corps would have to go UP in order to provide the farmer with at least subsistence living income.

And if farm prices went up enough to provide the farmer with even a small profit, then the people would not be able to afford to buy food at the wages that the other mega-corporations pay their employees.

So we can see that not only do the Mega-Ag corps get the benefit of these subsidies, the entire Corporate world gets a share because low food prices allows them to pay their workers less than what would be a living wage, and the people – the general population, gets a benefit because they can afford to EAT!!

And a side issue – why are we even talking about subsidies when ag products are getting RECORD prices in the markets? Why doesn’t Congress tie farm “subsidies” inflation adjusted prices?

So… we can see that the government subsidies on food production underpins the entire economy as it’s presently structured. If you want to eliminate farm subsidies – then I’d suggest you first figure out what you’re going to do when the rest of the price structure collapses. THEN eliminate the farm subsidies.

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  1. Molly / Jul 25 2014 20:52

    The part of the equation you miss is the taxes that pay for the subsidies, also the artificially low price of our exports, so via taxes we in fact subsidize some oil sheik’s food… The government has so sequed the whole “supply and demand” equation that the country is on the verge of collapse.. Look what the subsidies have done to the cost of medical care, supply and demand says you can’t charge people more than they have to give, yet that is what is happening. $5,000 + for a normal childbirth, $700 for a couple of stitches, I read where we are all supposed to save $300,000 just for medical expenses for after we retire, for what is not covered by medicare, just to die anyhow. The US Government has created a monoploy on pain relief, that is how they can do it, because big brother knows what is best, and look at the economy and the prices. Eventually the subsidies turn into a pyramid scheme with less and less people able to actually afford the day to day cost of living, where we are now, and like all pyramid schemes they are destined to collapse, like all these retiremant funds and Social Security.
    That brings us to the REAL SOLUTION. We are at a point in history where technology is such that we can produce the big 3 for everybody, food, shelter and clothing, Here is how, loggers have chainsaw instead of misery whips, nails are spit out of a factory by the barrell, carpenters have nail gun, FARMER can plow enough land in one day to grow enough food for thousands, if not tens of thousands, harvesting is almost a easy as driving a car, that includes corn as well as cotton, weaving machines, not to mention we have enough energy to do it, (much of it is wasted running around like chickens with our heads cut off, trying to just make a living. It is just stupid some of the stuff, I don’t no about you, but I get about 5 phone books a year, and somebody is making a living selling ads, they are in fact a waste of resources.
    So we send cheap potatoes to South Americia, and put thier farmers out of a job, protest erupt and people die, I think it was Brazil…. Then you have the immigration problem caused by not paying farm workers a living wage, they can send the money home a feed thier family of 5, but if your family is here, well you can get FOOD STAMPS. America is no longer a free market society where is the farmer doesn’t pay somebody to pick the crop, they rot in the field, the farmer gets nothing and the country has no food, and the worth of a small farmer is greater than a lawyer, or somebody who gives manipedis, or launders money, and without government intervention a lawyer and a banker and a CEO of a drug company are NOT WORTH millions a year, loggers and farmers ARE, and people who sew clothing, on thier sewing MACHINES.
    It is Biblical, thy kingdom come, thy will be done on earth as it is in heaven. HEAVEN on earth, no more hunger, no more homelessness, look at any dump and see the clothing go by, look at the free TVs beside the road, everybody can have a TV, cell phone, electricity, because we have the TECHNOLOGY to do it (but they rip out dams. Now the Kochs are supposidly “christian” as are alot of these other people already “rich” taking subsidies from people who are just trying to live, giving more in a year to politicians (blind guides) so they get their subsidies, than most people live on. If they took just that money and gave it to their lowest paid workers, they would have enough. Biblically they are “greedy as the grave” they are taking their own country down.
    The “beast” is a pyramid, it’s image is on a dollar bill… Nobody can buy or sell without it..

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