I actually kind of want to see what happens if no tariffs and subsidies happen. But question is I've anyways heard how much us farms rely on farm subsidies, any one know of actual numbers?
Other countries subsidize their agri exports or put tariffs on agri imports. The playing field is not level.
The subsidies aren't just for exporting, there's a reason why actual food shortages/famines haven't occurred again in America.
The depend on the subsidies to make a living growing what we want them to grow. Without the subsidies a lot of farmers would be forced to produce things that are more profitable which would cause all sorts of price instability when it comes to certain crops.
What is fascinating is how the Canadian approach to their Dairy industry using supply chain management(instead of subsidies) along with with barriers to entry domestic(limiting producers through licenses) and internationally (tarrifs) They produce what demand is. They don't really export milk so prices and supply is stable.
No, thus government actions are an essential part of our society and is important. Can people live without healthcare? (ok, let's not go there in this thread).
You are absolutely right, if the government didn't do everything for people they would just roll over and die.
The point is regardless of the corn lobby, the agriculture here is necessary and therefore it wii be produced. The purpose of subsidies is obviously to maintain supply and therefore maintain costs to consumers but without subsidies America is still a major producer of crops like wheat
Without subsidy you'd have a decrease in supply of certain crops which would cause an increase in price of certain goods until the prices were high enough to get farmers to start producing those crops in higher quantities, in theory....but globalization would likely cause crops from other nations to undercut the price at which farmers could make a living here so the short answer is that many farmers simply wouldn't make it. They'd lose their land and become unemployed. Globalization would have put many farmers out of business decades ago without the subsidies because of the competitive disadvantages American farmers face with the laws and rules they have to abide by that farmers in other countries don't.
Healthcare and food are products of labor The government can guarantee freedom. If there aren't enough doctors it cant guarantee healthcare
According to free market logic, if importing corn or whatever from Russia is cheaper, that's what will happen, and American corn goes bye bye.
We have subsidies to eventually keep prices down and stabilize supply Not just for farmers to make money. If subsidies go away price goes up and a lot of farmers will keep producing Its not as simple as if subsidies go away farmers go away. If subsidies go away the price dynamic changes
The ultimate goal of subsidies is stabilizing food supply. Its bigger than farmers. Farmers in Iowa don't have that much clout in Washington. They don't have votes or money like that I know about the corn lobby but im referring to more mid sized producers
