The beauty of the free market system - capitalism - is that people enter the market at will and leave the same way. In the middle they offer a product or service that people deem to be worthwhile or not. The price has a lot to do with how well it is received and esteemed by the public.
One business that should be the epitome of free enterprise sold out years ago, and now they are crying because they are being treated unfairly. I'm talking about farmers. What is more entrepreneurial that taking a piece of land (possibly even unfriendly), planting seeds, watering and fertilizing, hoping for enough rain but not too much, hoping for warm weather but not scorching heat, hoping that insects are kind to the plants, and then hoping that there is a sufficient yield to harvest and turn it into a profit for him and his family - and be able to repay the loan from the spring?
This is pure free enterprise, but it has been corrupted. Price supports, parity, subsidized crop insurance.
Some farmers are paid money to hold land out of production. Some are paid for shortfalls. They are paid to preserve environmentally sensitive land.
Now farmers are complaining that an estimated $30-35 billion in subsidies may be cut from the federal budget (over the next 10 years) and they are afraid that they'll see their artificially high crop prices fall.
Did you know that you were supporting farmers who should be letting the market dictate what they can grow and sell - and for how much?
Farming is a fantastic business and career. It does not need the government intervention (regulation or subsidy) to survive.
───
For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other bloghomesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
© Steve Hoffacker, 2011. All Rights Reserved.
I agree that the government should stay out of farming, Steve. I also think the big (huge) farming corporations are a blight on our land.
As it turns out a large number of those farmers that get paid to hold their property off the market are our elected officials themselves. Wow never saw that coming.
I could not agree more, Steve. My husband and I were farmers in the 1970's. We raised Polled Herefords, hogs, sheep, chickens and crops that sustained them and fed us. We shut down in the very early 1980's because of "Agri Business" that we could not compete with. There was no one to bail us out, no hand outs, no subsidies. We went a different direction with our lives. Today with agri business, it is a different kind of welfare and I am glad to hear it is stopping. Instead of genetically engineering crops and controlling food markets, I would love to see the re-emergence of small farmers and real communities.
What you say? Sometimes farmers plant something because the price is artificially high, like corn, and don't plant something because the price was forced too low, like sugar cane?
Steve, again you are correct. One business getting a perk over another only because it paid into the campaign of an elected official is sickening. Billions are being taken away from the Treasury each year because of this. And what do the corps do with the savings? Open plants in other countries, put their names on ball parks, and basically give more to the campaigns to insure it will continue and pay their upper management inflated incomes. No benefit to the people what so ever.
Same with ethanol. People say it doesn't affect food prices because the corn used for ethanol production is not a grain corn...That is correct, but the ground could be produce food crops instead of a subsidized "green" product.
It takes more energy to make and is less fuel efficient than a gallon of regular gasoline! Some green product.
Maria,
We now produce much more on much less land than we used to, but when you get the big corporations involved in any business there are many unpleasant issues. :)
Steve
Tim,
Right. :)
Steve
Jeanne,
Congratulations on giving farming a go. Would love to see the re-emergence of the family farm but don't now how much is possible today. :)
Steve
Jay,
I didn't make the rules. :)
Steve
Dale,
This practice is decades old. but nothing like turning it off. :)
Steve
Than,
That's all true, plus ethanol companies are paid a subsidy. :)
Steve
Steve
The reality is that the government no longer has the money for the hand outs.
Good luck and success.
Lou Ludwig
Again, you folks have taken your eyes off the ball. Farm Subsidy's are not directed at the farmer. They now subsidize the Commodity Traders and Investment Banks. Agricultural Land,Crops,ect. are nothing more than assets to depreciate. The REAL MONEY is in the "trades", the "hedges","arbitrage" of the various ag commodity's. Sorry, this subsidy is not going away.
Lou,
They don't, but when has that stopped them? :)
Steve
Mike,
No they're likely not going away even though they should. Still a reduction of a few billion a year can't hurt, and the budget can use it. :)
Steve