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The Yeoman's avatar

Coolidge’s opposition to the Farm Bill was wise: Price supports distort the real costs of cheap food.

The general logic is: Commodity crop prices are artificially low —> This de facto subsidizes UPF and makes them dangerously cheap —> UPF price points distort consumer choice (spend $3 on Oreos or $5 on Spinach) —> Consumers shy away from the better whole foods —> This hurts farmers & health outcomes.

Additionally, the extensive subsidies for commodity crops make it comparatively more profitable to grow such crops than to grow less subsidized crops (e.g., specialty crops). This was an intentional policy decision from decades ago, as we all know. Issue is: This further increases the supply of commodity crops (pushing prices further down) and decreases the supply of other crops (keeping their prices up).

And there are numerous Farm Bill programs that subsidize commodity crops and thus deserve scrutiny, most notably (1) the effective reference prices and (2) federal crop insurance.

Now let me add: I desperately want to help America’s farms, and specifically those growing/raising the stuff that’s good for families. Price controls and subsidies are just the worst possible way of doing so.

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The Yeoman's avatar

Love an opening quote from Wendell Berry!

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