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Wednesday, August 15, 2007
John Stossel :: Townhall.com Columnist
Dead Men Farming
by John Stossel
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By now you've probably heard that a new Government Accountability Office (GAO) report states:

From 1999 through 2005, the USDA "paid $1.1 billion in farm payments in the names of 172,801 deceased individuals. ... 40 percent went to those who had been dead for three or more years, and 19 percent to those dead for seven or more years." One dead farmer got more than $400,000 during those years.

And they say you can't take it with you.

Defending the USDA, the GAO adds, "The complex nature of some farming operations -- such as entities embedded within other entities -- can make it difficult for USDA to avoid making payments to deceased individuals."

Exactly. The agricultural section of the U.S. code is nearly 1,800 pages.

There's an easy way to avoid such absurdities: Abolish all farm subsidies.

Why are taxpayers forced to pay farmers $25 billion a year? Sure, farmers face droughts and floods, but that's been true since Moses' day. They can't say they weren't put on notice that farming has risks. Running a restaurant or a software company entails risks, too, but we don't guarantee their continued operation. Those businesses and America are stronger for it.

Farm subsidies are popular with politicians because Big Agriculture lobbies hard, and many people believe that without subsidies, we wouldn't have a reliable food supply.

But what an insane myth that is. As I wrote in "Myths, Lies, and Downright Stupidity", most crops are not subsidized. Yet we have no shortages of fruits, vegetables, livestock and poultry. America has plenty of peaches, plums, peas, green beans, etc., and farmers who grow those crops do fine. What makes wheat, cotton, corn, soybeans and rice different?

Last week, the New York Times reported that dairy farmers in New Zealand get along perfectly well without subsidies : "[E]ver since a liberal but free-market government swept to power in 1984 and essentially canceled handouts to farmers -- something that just about every other government in an advanced industrial nation has considered both politically and economically impossible. ... [O]utput has soared." Continued...

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About The Author
John Stossel is an award-winning news correspondent and author of Myths, Lies, and Downright Stupidity: Get Out the Shovel--Why Everything You Know is Wrong.
 
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Subject: American Subsidies Bad for Everybody
It's been commented that subsidies are bad for the rest of the world. This is true. I won't repeat the reasons already given.

It's also bad for the American consumer. We end up paying more for our groceries than we would otherwise.

And, ironically perhaps, it's also bad for the recipients of the subsidy. Just the way welfare payments create a culture of dependence and weakens the recipients self-esteem and ability to fend for themselves, it does the same thing for the agribusinesses that are subsidized.

It's welfare for the rich, and has the same negative effects as any other kind of welfare.

EdEKit -- on Giverment Subsidies
quoth EdEKit: "We do need to end subsidies to CORPORATE farms for sure, and possibly to sole proprietorships too."

We do need to end subsidies PERIOD.

E: "But we do need to insure profitability to farms."

Why? Farming is risk venture like anything else. If it proves unprofitable, fewer people will do it. This will result is more profit for those who remain, as lowered production will increase prices. This encourages people to come back to farming.

It all balances out, so long as the Free Market remains unfettered by the givernment trying to choose who the winners are supposed to be in advance.

The givernment should never "guarantee profitability" to *ANY* enterprise.


E: "It is ridiculous to subsidize the planting of crops, and subsidize not planting crops at the same time."

What, you want them to take turns?

No, giverment subsidies need to be ENDED. PERIOD. END OF SENTENCE. END OF PARAGRAPH.
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