“Red State Welfare” Keeping Farms Poor
This from the New York Times:
Drive across the empty reaches of the Great Plains, from the lost promise of Valentine, Neb., to the shadowless side roads into Sunray, Tex., and what you see is a land that has lost its purpose. Many of the towns set in this infinity of flat have a listless look, with shuttered main streets and schools given over to the grave.
With upwards of $20 billion a year in federal payments going to a select few in farm country, you would think that these troubled counties would have a more vigorous pulse. After all, corn and wheat prices are at record highs, and big manses here and there, with Hummers in limestone driveways, indicate that somebody is doing well.
It would be one thing if the despair and disparity in farm country were the sole products of history, if time had simply passed it all by. But it comes as a jolt to realize that government policy is much to blame.
The Red State welfare program, also known as the farm subsidy system, showers most of its tax dollars on the richest farmers, often people with no dirt under their fingernails, at the expense of everybody else trying to work the land. Like urban welfare before reform, agriculture subsidies reward those who can work the system — farming the government, as they call it around the diner.
Read the whole thing, but here’s the summary: Subsidies don’t work, because government is terribly inefficient at distributing what is needed to whom at the right time. And it’ll always be like that.
We really should take a cue from New Zealand, which dropped all of it’s farm subsidies (eschewing the dire warnings of populist farm lobbyists) to great success. That country is actually seeing growth in it’s agriculture industry with more people getting involved with farming and making more money at it.
That’s because while the government is really bad at trying to supply people with what they need when they need it, the free market is really good at it.
At least for those willing to work to earn an honest dollar, that is.
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