View Single Post
Old 19-07-2011, 06:45   #3
Eric
God Member
 
Eric's Avatar
 

Re: Why do Farmers get massive benefits?

That farmers need subsides is no shock. Governments in the Western World have a decided interest in keeping the price of food reasonable ... by that I don't mean "cheap" but low enough to stop food riots Most of the cost of what you eat has to do with something other than farming: processing, transportation, packaging, storage etc., but you no doubt get the picture. The farmer gets a comparatively low price for his product. It would be interesting to find out, for example, what percentage of the price of a loaf of bread goes to the guy who busts his ass growing wheat. This is the guy who has to make significant capital investment. For example, a decent combine over here will go for about $150,000. The farmer can depreciate the capital expense over, say, 15 years on his income tax, but is is still a significant outlay in a business that exists at the whim of, well, God ... or whoever it that controls the weather. And if the farmer, particularly the "little guy", goes bust, the alternative "Agribusiness" is very unattractive as an option. In Saskatchewan, one of the world's biggest producers of wheat, the folks will tell you that there have been only two good years for farmers: 1929 and "next year".
Eric is offline   Reply With Quote