26 US House members ask Pres. Obama to let farmers out of CRP

[creepworm]

It is kind of funny how everyone says that farm subsidies should be stopped because of the current price levels. What if price levels drop back down to below the cost of production? A program this huge can not be stopped and started as the market fluctuates. Also, I don't know if anyone has looked into the type of farm subsidies they have in Europe, but they dwarf the amount paid to U.S. farmers.

In closing, it might surprise some people to know that 6 of the top 20 recipients of farm subsidies in the years from 1995 to 2009, had at least half of their subsidy money come from conservation programs. Ducks Unlimited received the 6th most money in farm subsidies over that time with just shy of $45,000,000.

Google EWG farm subsidy database and look around on that HSOforum, it will become clear that getting rid of farm subsidies will hurt conservation efforts nationwide.

[swamptiger]

Look to New Zealand to see the effects of removing farm subsidies.

Quote:

Life without Subsidies

How the farmer was impacted by lack of government assistance

• Today New Zealand has around 80,000 farm holdings on 15.5 million hectares (38.3 million acres). The number of farms has held steady since subsidies were removed; land area has fallen slightly as marginal land has been turned over to forestry or allowed to revert to native bush.

• Since subsidy removal the agricultural sector has grown faster than the rest of the economy. Agriculture’s contribution to the New Zealand gross domestic product (GDP) has risen from 14.2% in 1986-87 to 16.6% in 1999-2000. Agriculture accounts for 11.4% of the total workforce.

• Rural population has kept pace with national population since 1986. Employment on farms has fallen somewhat, but these losses have been balanced by increased rural employment in tourism-related businesses.

• The number of forced farm sales directly resulting from the removal of subsidies is estimated at 800, or 1% of the total number of farms.

• Agricultural productivity has gone up 5.9% a year on average since 1986. Prior to 1986 agricultural productivity gains were about 1% a year.

• The total number of stock units on New Zealand farms has fallen by 9% since 1987. Sheep numbers are down by 29%, but cattle numbers are up by 35%. Sheep farming was the most heavily subsidized sector within agriculture.

• In 2001 governmental assistance to agriculture was equal to just 1% of the value of agricultural output, compared to an average value for developed countries of 31%. Remaining assistance in New Zealand is primarily in the form of funding for agricultural research.

• Around 90% of New Zealand’s total farm output is exported. These exports account for over 55% of total merchandise exports. Most food consumed in the country is domestically produced.

Data summarized from “Life After Subsidies: The New Zealand Farming Experience 15 Years Later” (2002), Federated Farmers of New Zealand (Inc). www.fedfarm.org.nz

[swamptiger]

John Stossel's take: