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.
From my article in Barn Raiser today: "While the proposed bill passed the House Agricultural Committee with unanimous Republican support, it included a $27 billion cut to Supplemental Nutrition Assistance Programs (SNAP) funding over a ten-year period, crossing a red line for Democrats. In May, weeks before House Republicans released their draft farm bill, Secretary of Agriculture Tom Vilsack warned against doing this, saying “it’s not the right policy,” and that it broke Chair Glenn Thompson’s promise in April not to cut SNAP."
In other words, there are some issues Democrats are unwilling to compromise on and there are some issues Republicans are unwilling to compromise on. Some sort of "middle ground" would need to be reached for a new bill to pass through the House and Senate.
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.
Love an opening quote from Wendell Berry!
Question in my mind is, why is it a tough one? Who isn't voting for it and why?
From my article in Barn Raiser today: "While the proposed bill passed the House Agricultural Committee with unanimous Republican support, it included a $27 billion cut to Supplemental Nutrition Assistance Programs (SNAP) funding over a ten-year period, crossing a red line for Democrats. In May, weeks before House Republicans released their draft farm bill, Secretary of Agriculture Tom Vilsack warned against doing this, saying “it’s not the right policy,” and that it broke Chair Glenn Thompson’s promise in April not to cut SNAP."
In other words, there are some issues Democrats are unwilling to compromise on and there are some issues Republicans are unwilling to compromise on. Some sort of "middle ground" would need to be reached for a new bill to pass through the House and Senate.
Excellent and very succinct explanation of what the Farm Bill is and why we all need to champion it. We all need food as ‘agricultural eaters.’