by Diane Katz, Emily Goff
The Heritage Foundation
August 06, 2012
Farming is risky, but so are all other entrepreneurial endeavors. There are also rewards to balance the hardships. As it is, farm subsidies, commodity quotas, and tariffs largely enrich upper-income producers of grains, oilseeds, cotton, milk, and sugar and ignore most other commodities. It is time for farmers to assume responsibility for their business, just as business owners do in every other sector of the economy. A variety of options exist, including diversifying product lines, buying insurance at market rates, leveraging assets, and maintaining cash reserves. With federal public debt exceeding $11 trillion, shifting even more of the costs of agriculture risk to taxpayers is simply unsustainable. Moreover, it is fundamentally bad policy. Congress should act now to eliminate unwarranted farm subsidies across the board. Real reform will require entirely new legislation—without piecemeal handouts to ranchers—and more of the backbone glimpsed in the House this week.
