Monday, September 26, 2011
A return to our old model of farm price supports
Here is the link to a new report by the National Farmers' Union outlining new policy directions for future farm bills. Essentially they call for the government to support and stabilize commodity prices, instead of paying farmers the difference between market price and fair price. This is something I've advocated in past posts; such a change in farm policy would stabilize price and supply of commodities for the US and for the rest of the world, which would be good for consumers and producers. Those who would suffer are the grain traders, who thrive on volatile prices, and the food processors that profit from artificially-low commodity prices. I wouldn't shed many tears for these last two groups.