FARM DOLE. Ooh ooh, can I write the missing paragraph about international effects of American subsidies? Pick me, pick me!

…Of course, markets always reward some and punish others. The real annoyance in recent farm prosperity is that it only seems to have increased the burden of American taxpayers. Even as farm net income rose by half between 2002 and 2004, the volume of direct government payments (read: subsidies) paid to farmers rose by nearly the same amount, from $11 billion to $15.7 billion. If farmers are reaping such a green harvest, why are the rest of us subsidizing them so heavily?

The reason is that our demented farm policy has managed to get even worse recently. It’s no surprise that this strangely market-distorting action has taken place in the last few years under a Republican Congress and a Republican president. Despite their self-identification as the party of entrepreneurial, competitive small business, the Bush crowd has shown itself to be a relentless advocate for non-entrepreneurial, competition-averse large businesses. Political geography also plays a role here. Many of the largest farm-goods producing states are red, and many of the largest farm-goods consuming states are blue. …

Here’s a precis of the 2002 bill’s provisions. It provides three sources of income support for commodity farmers. Direct payments are made to farmers regardless of “current production or … current market prices.” According to this chart, those will cost us $5.3 billion in 2004. A new subsidy program–counter-cyclical payments–guarantees farmers a minimum price for their crops regardless of the market price (estimated 2004 payments: $1.9 billion). Then there are provisions for loans ($4.1 billion), a special dairy program, and payments for conservation.

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