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July 19, 2009


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Brad Wilson

The program is absurd, BUT, the bigger beneficiaries are the buyers of grain & other commodities. Subsidies don't lower or raise prices. Economically the lack of price responsiveness causes it. The policy cause (US, which is price leader for major commodities,) the lowering (1953-1995) and elimination (96-) of nonsubsidy price floors and supply management. Top side: lack of price ceilings and reserves. US has market share, is price leader, BUT, unlike OPEC, chooses to lower market prices, to lose money on farm exports (ie. 1981-2006). Top side we had 3 price spikes in the 20th century. We had excellent policies & programs 1942-1952 (& zero commodity subsidies). Proof: click on my name.

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Vic Keegan

Thanks, Taylor - that's very interesting

Vic Keegan

Thanks, Taylor - that's very interesting


Dispatch from Central Texas: our lakes are dry as we still are making deliveries to downstream irrigators (subsidized rice farming). Subsidized ag raises our feed prices for cattle, and discourages our private land owners (~95% of land area in Texas) to not keep lands in conservation use. Water allocations are part of the subsidy mess. Keep it up and keep it loud.

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