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Farm Subsidies Ruining American Farmers

April 26, 2009

By Andrew Dossman 11/24/08

American farms have been receiving “farm subsidies” since the end of the great depression and the dust bowl. A farm subsidy is money from taxes that is paid to farmers to grow or in some cases to not grow crops that year.

This made sense back in the 1930’s when about 25% of the population was on 6 Million farms across the country. However demographics have changed with time and now there are about 157,000 farms in America which account for over 72% of the total farming output.

Now these subsidies are supposed to help struggling farmers by placing a price floor for their crops, as well as giving them some extra money to continue farming.

Farmers are important part of our economy, and if they don’t produce, we will not have enough to eat. However, it has become more apparent that these subsidies are no longer going to smaller farmers, but to huge agricultural businesses. This is obvious with the number of farms going from 6 million to 157,000 and the fact that fewer people are controlling such a huge percentage of farming output.

Small farmers, for which the original plans were created to assist, typically do not qualify to receive these subsidies, and are consequently going out of business because they cannot compete with the low prices the large agricultural businesses can sell their crop for. This is because big Agri-firms offset their costs with the subsidies they qualify for, and the small farmer does not.

This interventionism does not only hurt the small American farmer, but it also causes problems in other countries. For example, in Mexico huge amounts of subsidized American corn, which is extremely cheap compared to domestically grown Mexican corn, has flooded the Mexican market.

This has caused Mexican farmers to no longer be competitive with prices, since they are not lucky enough to receive huge amounts of government money to make it. This has caused large populations of Mexican farmers to go broke and have to look to immigration to America to feed themselves and their families.
Tax Payers need to be aware of farm subsidies, and move to end them; they are hurting the farmers and causing a wave of immigration that America is not ready to handle, at your expense.

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