I don't understand why the agricultural industry -- dominated by giant, well-organized corporations -- gets what is in effect free government insurance against damage to their business.
Agricultural Disaster Assistance Appropriations Act On Passage 05/10/2007 House Roll Call No. 336 110th Congress, 1st SessionPassed: 302-120 (see complete tally)
This House bill would provide $3.5 billion to farmers who lost crops or livestock due to weather-related events during fiscal years 2005 through 2007. Farmers who lost 35 percent of their crops or livestock producers located in counties where the Agriculture Department declared a natural disaster would be eligible for relief.
Why can't farms buy insurance in the private market like everyone else? Is there something special about the agricultural industry that prevents them from buying insurance and passing the costs on to their customers? Considering every other similar circumstance, it's hard to believe that the private sector couldn't handle this much more efficiently.
I think it's a historical fluke: When America took its big plunge into socialism in the 1930s, farmers played the role of the long-suffering peasantry ready to trade their freedom for government control. The Dust Bowl made that all much easier to sell.
Now most of agriculture is like the sugar industry: They've been so thoroughly wedded to government for so long that they would rather put their energy into maintaining government perks than competing in the marketplace.
And to be fair, it's a strange marketplace. Lots of countries have large-scale tax support of agriculture
BB: It's a good point that many other countries also subsidize their agriculture. However, couldn't we turn that to our advantage by buying their artificially cheap products? That would, in essence, let the American consumer capture the vale of those subsidies.
That's a good point, Michael. Why not let foreign governments subsidize our food?
I guess there's an emotional attachment to food, a sense that there's something deeply dangerous about a country not being able to feed itself. It'll take a while for those emotions to adjust to new technology.