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There are no national security problems for almost all commodities that receive little to no subsidies. As the Washington Post reported: Stall man dismisses outright the claim that farmers couldn't survive without subsidy money. 'Why does the livestock industry survive without subsidies? ' He asks.
The government protects farmers against fluctuations in prices, revenues, and yields. However, agriculture is no riskier than many other industries, and it does not need an array of federal subsidies. Farm subsidies are costly to taxpayers, but they also harm the economy and the environment.
Farm subsidies are federal government funds paid to U.S. agribusinesses. They help reduce the risk farmers endure from the weather, commodities brokers, and disruptions in demand. Out of all the crops that farmers grow, the government only subsidizes five of them.
The study recommended, in conclusion, that we slowly phase out both the commodity payment and crop insurance subsidies all together. Fair Farms supports agricultural subsidies that relate to conservation of farmland, as well as those that are targeted to smaller-scale, diversified, and low-income farmers.
This year's farm bill gives them a chance to prove it. They should end subsidies for selloff farmers, remove agricultural trade barriers to cut food costs for families and reduce the debt load being imposed on young Americans.
If all the subsidies were removed, US agriculture would face more risk and perhaps a decline in total production. Value of land would be impacted. No one should expect however that it would be a massive change today compared to 30 years ago. Go back to 1985 and drop the subsidies then, and it would have been a big deal.
Subsidies discourage good management and encourage inefficiency. As a result, consumers pay more for less. If farm subsidies were ended stronger and more innovative agriculture industry would emerge that would be more productive and more resilient in the long run.
Energy subsidies also partially buffer domestic markets from higher global food prices. If they were removed, some local farmers and small producers would be driven to the wall by higher costs. Any removal of subsidies would ripple through the economy by accelerating the cost of living.
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