Are Farmers Getting Less Competitive?

An article on AgWeb

Why do U.S. farmers pay double for inputs compared to Brazil? The answer might not be found in the supply chain, but in federal farm payments. A growing chorus of farmers and economists is asking if the U.S. farm safety net has evolved from a “protection” program into a “profit enhancer” that is driving up land prices and locking out the next generation.

It’s a question gaining new attention as House Republicans propose an additional $12 billion in farm aid. If approved, total government support for agriculture this year would climb to roughly $56 billion when combining baseline farm programs, supplemental assistance and disaster aid.

For some farmers and economists, the concern isn’t whether a safety net should exist, but whether it has evolved beyond its original purpose. They argue programs designed to help producers survive difficult years are increasingly protecting profits, even in profitable times, and that shift might be creating unintended consequences across agriculture.

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