Subsidies Rise to 22 Percent Of Rich Country Farm Incomes


A new study by the Organization for Cooperation and Development reports that rich country farm subsidies…

…rose to around 252.5 billion dollars or 22 percent of total farm receipts in 2009.  This compares with a 21 percent share in 2008 and 22 percent in 2007.  The latest rise in support across the OECD countries was due to the easing back of agricultural commodity prices after they hit record highs in 2008.  The falls triggered government programmes aimed at propping up domestic prices or farm income.

Producer Support Estimates as % of gross farm receipts, 2007-09 average

In the US, support to farmers rose to 10% of total farm receipts from 8% last year while in the EU the rise was to 24% from 22%.  In Australia, the ending of exceptional payments linked to the restructuring of the dairy industry reduced the overall share of government support to farmers.

The sharpest rises in support to farmers (in relation to total receipts) last year occurred in Canada, where the PSE rose to 20% from 13% of farm receipts, in Korea (52% from 46%), Norway (66% from 60%) and Switzerland (63% from 57%).  In each of these countries the main cause was increased price support for dairy products.

Go here to for an excellent Reason article explaining how bad farm subsidies are for the environment, consumers, taxpayers, and poor country farmers.

Via International Policy Network.

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  1. Yuppies love the sight of cows grazing in a field and they despise the idea that farmer Brown might actually sell the field to Wal Mart.

    1. And I more or less agree. Believe it or not, it is possible to enjoy pastoral settings and dislike the aesthetics of Walmart and at the same time, not want everyone to be forced to pay for the things one likes.

      1. I believe it. My point is that one reason the dairy farmer gets subsidized is that there is this hidden agenda with a lot of local elites.

  2. The United States is only in 11th place? This is unacceptable.

    1. +1 good morning Sol

      1. I propose a war on the war on farm subsidies.
        For the children of the corn.

  3. Organization for Cooperation and Development

    Obviously an anti-farm group

  4. why does reason hate john cougar?

    1. And Willy Nelson?

  5. We win! I’m surprised it’s as high as 1%, actually.

    The NY Times, to give them (rare) credit, actually wrote a good article about how, since the removal of subsidies and price supports, dairy farming has boomed:…..amp;sq=new zealand farm subsidies&st=cse

    1. I would like to subsidize a butcher shop by buying a sausage on some white bread with tomato sauce. I wonder if they still sell those like I used to get them in Howick as a kid…

      1. School sports teams and similar still do those as fundraisers. Go to the parking lot outside any Warehouse on the weekend.

  6. I tell my liberal friends who bitch about “food policy” hey, let’s get rid of these farm subsidies! They are one of the biggest reasons HFCS is in everything for example…

    1. And if we got rid of subsidies, those poor farmers in Africa might make a living.

    2. Unfortunately, it doesn’t catch on on the Left.

      There’s a decent amount of lefties who are in on the whole anti-farm subsidy thing, but they certainly wouldn’t vote for a Republican or anyone else on the basis of just that issue.

      As far as the politicians are concerned, favoring bigger farm subsidies is a large part of how Democrats compete for rural votes, overcoming the Republican advantage on cultural and social issues.

      You might think that urban Democrats would be anti-farm subsidy, but most of them are bought off by the farm subsidy crowd claiming that they’ll throw a few bucks in for subsidized food for the poor.

      The last farm bill, the subsidy proponents bought off the urban Democrats with that and a combination of throwing a tiny bit of money towards non-grain crops for the first time.

  7. Some might suggest tat cutting farm subsideis might be a good idea, I would advise these people to look at the starving children in the streets of New Zealand.

    1. Hobbits?

      1. Yes, Hobbits, but you know what they say: Pipe-weed will get you through the times of no farm subsidies better than farm subsidies will get you through the times of no pipe-weed.

  8. Wait, didn’t Obama give Ballsack Vilsack the Ag Dept? Yeah, he’ll cut ag subsidies. When those corn-fed Iowa pigs fly. Look at who thought he was a great choice for Ag: all the industry lobbying groups. That’s a sure sign of a guy who’ll upset the status quo by pushing to end subsidies.

  9. I apologize for my shitty Canadian FarceCon government which has found another way to fuck over the free market.

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