Significant US farm losses persist, despite federal assistance

They are quite aware of taxes because 13.5% of their income on average comes directly from federal subsidies paid by taxes on "city folk".

https://usafacts.org/articles/federal-farm-subsidies-what-da...

> The voters will vote against their own interests over and over and over if they keep hearing something that resonates with what they feel.

Most large farm owners are very well off and are absolutely voting in their own interests for the party whose primary goal is to cut taxes on the wealthiest while cutting government support for the poorest.

The rural working class and poor on the other hand are however often voting against their economic interests, but their economic situation has long been ignored by both partie, so having given up hope for economic change, they often vote on culture/identity issues.

Apparently, New Zealand abandoned all farm subsidies at some point and while the transition was abrupt and rough for farmers the farming sector recovered and is now performing much better. They abandoned it because they could no longer support it economically. They were producing lots of sheep that couldn't be sold. Now they produce much more meat with much less sheep.

Farming subsidies aren't unique to the US. Here in the EU, farmers are giving away subsidized potatoes in Berlin currently. You can literally go to a collection point and pick up some free potatoes. They have so much over production that farmers literally don't know what to do with it. Nobody wants them. In the same way there's a history of subsidized beetroot farming for sugar production, too much wine in France, butter and milk surpluses, etc. This happens over and over again.

In the US, the two main crops that are being subsidized are corn and soy beans. Corn syrup isn't exactly a thing that the rest of the world needs in their diets. It's a very uncommon ingredient outside the US. And commonly associated with obesity issues inside it. Soy beans are useful for export and for feeding animals. Exports are problematic (tariffs) currently and animals can also be fed with corn.

And of course much corn is also used for ethanol production, which in turn is used to greenwash fuel usage in the ICE vehicles that burn it. Bear in mind that intensive corn farming is very CO2 intensive. The extensive mono cultures in the US are destroying the landscape and contributing to desertification. It's not great the environment or global warming. It doesn't make any economic sense to be subsidizing corn production at this scale.

The problem here is that these are relatively low value crops that would not be produced in anywhere near the current volumes without subsidies. They aren't actually needed in these volumes either. Farmers mainly grow it because they get money to grow it. They would be growing more valuable things without subsidies. Or at least be diversifying what they do. The irony of this is that many farmers don't even like being that dependent on subsidies.

The whole system perpetuates but there's no solid argument for it. Everyone could arguably do better without that. But it's easier/more convenient to not change the system. So politicians keep on "protecting" the farmers (i.e. their own seats).

The inputs to farming, especially seeds, fertilizer and machinery, are controlled by monopolies and near-monopolies. There have been too many mergers.

On the sell side, there's monopsony or near-monopsony, with very few big buyers.[1] Farmers are caught in the middle, with little pricing power on either side.

There's not much question about this. There are antitrust cases, but with weak penalties and weak enforcement.

[1] https://equitablegrowth.org/competitive-edge-big-ags-monopso...

Why tho do you feel the need to defend big agri businesses skirting employment law and pressuring wages downward by bringing in illegal people? I find it a bit weird looking at the US how they seem to kneejerk into different camps depending on what the other side does with some old outliers like bernie who retain their line.

>Ironically they may tolerate local govt, and had federal govt, but they are most dependent on fed govt policies.

I live in a much smaller country but here there's similar pressures at play. I feel like a more nuanced take that farmers either don't voice or don't voice well here is that the federal and EU gov has benefited these big corporate farms they compete with because they're by far the best at siphoning off these various subsidies that farmers supposedly depend on. At the same time gov requirements make it almost impossible to run an smaller independent farm or one that doesn't depend on one of these middlemen to an extreme degree.

I worked for a meat conglomerate here in belgium and plenty of the farmers they dealt with didn't own their own cows (and plenty went under). They essentially rented their business to the company which owned the animals on their land, provided the calf feed made by their subsidiary, employed a load of vets, had an international transport company, had me and others writing software that would automate the mindbogglingly stupid forms and rules for transport (which were interpreted comically differently by regional departments of the federal food safety agency so depending on the jurisdiction you had to do radically different things).

Just the paperwork to run a competitive farm was/would have been impossible to deal with for many of these people and it was so clearly made up by people who never had to deal with the consequences directly.

On the other hand there's also plenty of examples of things like the gov rugpulling with environmental legislation in the netherlands.

Things like caping farms at past nitrogen emissions (benefiting the big ones) after first encouraging farmers to take loans and invest insane amounts into equipment to reduce those emissions.