Tuesday, November 12, 2013
Billionaires Received Millions From Taxpayer Farm Subsidies: Analysis
http://www.huffingtonpost.com/2013/11/07/farm-subsidies-billionaires_n_4232739.html Due 18 November 2013 at 6am. Why do billionaires get into the farming business? Do they really NEED the subsidies? If we disallow subsidies to all farmers, what will happen to the food supply?? WHY?? (look at the supply curve and discuss incentives--also consider weather)
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Between 1995 and 2012, U.S. taxpayers provided $11.3 million in subsidies to farm businesses connected to 50 billionaires. So why wouldn't a billionaire enter the farming world? These billionaires may even be getting more help from taxpayers than estimates show from a program known as the crop insurance program. These various aids were created to help the farmers during the Depression and when the crop prices were at a dangerous low. Providing these people with such abundant amounts of subsidies now is not necessary. As EWG senior vice president Craig Cox said, "We're sending billionaires farm subsidies while at the same we’re proposing to make it harder for poor families to buy food." If the subsidies were taken away from the farmers, the food supply would most likely decrease, since the incentive of earning extra money from producing an extra bushel of corn or barley is gone. If there is a drought or other weather issues that would hinder the farmers' crop yields, we would see even more of a decline in supply.
ReplyDeleteThe reason why billionaires get into the farming business is quite obvious--- they can make money off of this! The granting of subsidies is basically why they are in it. If subsidy bill is vetoed, farms will produce less because the incentive is gone, which causes the supply curve shifting to the left and makes the the equilibrium price to rise. This will cause people being unable to afford food.
ReplyDeleteBillionaires get into the farming business to reap the benefits of the subsidies the government gives to farmers. They most certainly do not need the extra money in order to run an efficient farm. The principle behind these subsidies is to make it possible for farmers with no money to invest so that they can produce crops and contribute to the economy. People who are already well off and choose to go into farming do not deserve these subsidies, but get them anyways. We would not be able to sustain American agriculture is subsidies were done away with altogether, but we can't keep giving subsidies away to everyone. The issue is that the subsidies need to be given to the farmers who could not produce or sustain themselves without them, not for the rich who just want to make money off of owning fertile land.
ReplyDeleteBillionaires enter the farming industry simply because there is easy money to be made. From 1995 to 2012, the government has given billionaires $11.3 million dollars in farm subsidies. This is tax free income that can be generated with relative ease. Considering the maximum amount of subsidy a farm can receive is $40,000, there is no point for the government to even bother with these billionaire owned farms. However, even with the new laws in effect, it seems like the government will only increase the amount of money given to billionaires. If subsidies were disallowed, the food supply in America would drastically shrink. Not only would the struggling farms have to shut down, but the billionaires who own farms too would lose their incentives to grow and they too would attribute to the supply decrease. On a supply and demand curve the supply line would shift left and the new equilibrium would be a much higher price. Considering there are food stamp cuts also occurring, an increase in price would seriously hurt financially struggling Americans.
ReplyDeleteSubsides were introduced with the intention of helping family farms maintain sustenance when prices or production of certain crops got too low due to unforeseen environmental circumstances. However, in a recent report, this is no longer the case, as billionaires have been taking over the agricultural industry.
ReplyDeleteIts quite ingenious if you ask me; I mean do they need to go into farming; do they need subsides? Of course not! But farming means subsidies and subsidies mean money, and money means—well—it means more money!
That’s all fine and dandy for the billionaires, however for those negatively affected, I’m talking about the U.S. taxpayers providing these subsides, the 47 million Americans cut from the food stamp programs, and the small farms that have been crowded out by the larger farming corporations, they aren’t the least bit happy.
Unfortunately, if we disallow subsides to all farmers, farms would produce less and food supply would decrease, shifting to the left. As a result, prices would skyrocket. As both Celine and Tianjie have explained, this is because there is no longer any incentive in producing an extra bushel of corn. As Celine mentioned, unpredictable weather conditions may occur, causing supply to further decline.
Billionaires get into the farming business because it is a safe yet profitable venture. These billionaires may even be getting more help from taxpayers than estimates show from a program known as the crop insurance program. These various aids were created to help the farmers during the Depression and when the crop prices were at a dangerous low. People who are already well off and choose to go into farming do not deserve these subsidies, but get them anyways. We would not be able to sustain American agriculture is subsidies were done away with altogether, but we can't keep giving subsidies away to everyone. If subsidies were disallowed, the incentive for a firm to produce agricultural products would decrease and the supply curve would therefore shift to the left. Also, if weather (such as a drought or freeze, like Florida experienced in the orange groves) was not cooperative, we would see and even greater drop in supply.
ReplyDeleteBillionaires get into the farming business to get the subsidies that were originally meant for middle class farmers. The article states that, "In total, U.S. taxpayers provided $11.3 million in subsidies to businesses with ties to the 50 billionaires between 1995 and 2012. The subsidies were first instituted to help family farms keep afloat when prices of certain crops got too low, but now smaller farms have largely been crowded out by larger farming corporations that control many levels of production." The rich do not actually need the subsidies. The rich are already rich, and not getting subsidies is not going to affect their financial status. If we disallow subsidies to farmers, the food supply will greatly increase. There will be no economic incentive for most people to farm anymore. Wealthy people would be making an average income from farming, causing them to leave, and middle class people would lose money from farming. When the weather is not favorable to farming, farmers loose money. Without subsidies to make up for this economic loss, middle class farmers would go bankrupt.
ReplyDelete-AnitaPizzirani (Pizza)
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Usually billionaires aren't exactly satisfied with the money they already have, so they find ways to invest their money to reap more money than the already have. Its all about getting more money. Obviously billionaires do not need subsidies, they HAVE money but the farming business is a dependable source of revenue. Subsidies were initially issued for farmers during the Depression and other times when they were really needed. I believe that if subsidies were disallowed many billionaires would leave the industry because there is no economic profit and many of the less fortunate farmers would be forced to leave the industry as well because they cannot afford to remain. As a result the supply cure would shift to the left, industry quantity would decrease and industry price would increase. This means that the food supply would be much lower and families would be paying even more for the same foods they were buying before. As for weather, which we all know can be very unpredictable, would make the farming industry even more of a gambling industry.
ReplyDeleteBillionaires get into the farming business to receive farm subsidies that would only increase and taxpayer money for their farming business. They also are allowed to get unlimited crop insurance subsidies. The billionaires themselves do not really need the subsidies; rather the farmers are the ones who do. Farming is a very competitive market that requires a lot of funding. So if we disallowed all subsidies to farmers the food supply would drastically decrease because so many were using much needed subsidies. And the demand would shoot up greater than the supply. Farmers would be receiving less incentives to stay in the business causing a drop in farmers and food.
ReplyDeleteBillionaires get into the farming business knowing that they will be getting subsidies that were originally for middle class farmers. They don't really need the subsidies, but receiving them just makes their farms more profitable. If we disallowed subsidies to all farmers, the middle class farmers (the ones who the subsidies were meant for in the first place) would be severely hurt if there were to be a change in weather that affects their crops (freeze, drought, etc.). In turn this will force some farms to go out of business because they aren't making enough money and this will lead to the food supply decreasing (the supply line shifting to the left resulting in higher prices).
ReplyDeleteThe reason why billionaires get into the farming business is because they are able to get subsidies, which in turn increases their wealth. They don't really need the subsidies but take them anyways because it is available for them. If we were to take away the right to get a subsidy, then many farmers, mostly in the middle class would be affected. A change in weather, such as a freeze could ruin their entire business, making it very hard to recover from. The food supply curve will also shift to the left, increasing prices for each unit. Overall, subsidies are needed in the farming business as a type of insurance, but it would not be abused.
ReplyDeletePeople with enormous amounts of wealth get into the farming business mainly based on the sole reason that they can aquire subsidies. By getting subsidies they can increase their wealth vastly. If there were no more subsidies many billionaires would leave because there is no logical reason for them to stay in the industry if they are not getting more money. Many of the farmers would be forced to leave the industry as well because they cannot afford to remain. The food supply curve will also shift to the left, increasing prices for each unit. Farmers would be receiving less incentives to stay in the business causing a drop in the farmers and the food supply in the market. Without subsidies the farmers would eventually go bankrupt.
ReplyDeleteBillionaires get into the farming business because they obtain subsidies that increase their wealth. In reality, they don't need the subsidies, they take them because it makes their farms more profitable. If we take away the right to get subsidies, the middle class farmers would be the most affected, if the weather changes the crops would be hurt. The supply curve for food would shift to the left, due to the increasing price of the crops. Taking away the subsidies would hurt the farming business drastically.
ReplyDeleteBillionaires first got into the farming business to help family farms keep afloat when prices of certain crops got debased. Now a days these billionaires are able to get taxpayer money for their farming businesses. They don't necessarily need the subsides that come from the government though taxpayer money, but they enjoy them because it will keep them comfortable. If we were to disallow subsidies to all farmers the food supply for the poor would shorten. This is because the government would have to cut into the country's food stamp program. Which will ultimately indirectly benefit wealthy farmers through the crop insurance program.
ReplyDeleteBillionaires get into the farming business to get the subsidies that were originally meant for the middle class farmers, they also are allowed to get unlimited crop insurance subsidies. These billionaires do not really need the subsidies. Farming is a very competitive market that requires a lot of funding, between the years of 1995 to 2012 U.S. Taxpayers has provided $11.3 million In subsidies to farm businesses connected to 50 billionaires if we discontinue to allow all subsidies to farmers the food supply would drastically decrease which will cause the supply of food to shift left In the curve increasing prices for each unit to continue a change in weather such as a drouth can cause a whole fiasco making it very hard to recover from.
ReplyDeleteBillionaires get into the farming business to make money off of the subsidies the government gives to farmers. They do not need the extra money in order to run an efficient farm. The subsidies are in place to make it possible for farmers with no money to invest so that they can produce crops and contribute to the economy. Wealthy people who go into farming do not deserve these subsidies, but still receive them. American agriculture would plummet if not for these subsidies, but the practice of giving subsidies away to everyone needs to stop. What needs to occur is that subsidies need to be given to the farmers who could not produce without them, not for the well off who are just trying to make even more money.
ReplyDeleteBillionaires get into the farming business because it is an industry of perfect competition. There are no barriers to entry, and they are unlikely to lose money. Also, they want to make money off of the subsidies given to them by the government. Although they are rich and do no really need them, these subsidies are a safe form of revenue. To disallow subsidies to farmers would lower their incentive to produce goods and the food supply would therefore decrease. The supply curve would shift to the left, causing quantity to decrease and price to increase. If bad weather such as a drought or a hurricane were to come through, it would damage the crops and decrease the supply of food.
ReplyDeleteSubsidies first meant for small farmers trying to stay in business are now benefitting billionaires after large corporations have crowded them out. Billionaires get into the farming business to take the benefits of subsidies paid for by taxpayers. They don’t need the subsidies actually designed for struggling farmers. The whole purpose behind the subsidies was for famers who were afraid of losing lots of money by crop falls to stay afloat and produce crops. But, billionaires can start off farming businesses and somehow qualify from the same subsidies. Now, the subsidies for them will most likely increase while money for the poor to get food will decrease. If all farmers, like the ones that really need them, are denied subsidies, there’s no way they would be able to produce food. The food supply would drop drastically, but the government can’t afford to keep giving out so many subsidies. They simply seem to be making ironically bad choices in sufficiently allocating their resources.
ReplyDeleteSubsidies first meant for small farmers trying to stay in business are now benefitting billionaires after large corporations have crowded them out. Billionaires get into the farming business to take the benefits of subsidies paid for by taxpayers. They don’t need the subsidies actually designed for struggling farmers. The whole purpose behind the subsidies was for famers who were afraid of losing lots of money by crop falls to stay afloat and produce crops. But, billionaires can start off farming businesses and somehow qualify from the same subsidies. Now, the subsidies for them will most likely increase while money for the poor to get food will decrease. If all farmers, like the ones that really need them, are denied subsidies, there’s no way they would be able to produce food. The food supply would drop drastically, but the government can’t afford to keep giving out so many subsidies. They simply seem to be making ironically bad choices in sufficiently allocating their resources.
ReplyDeleteBillionaires get into the farming business because it is easy money. That money ha going straight to their pocket without lifting a single seed. If farmers aren't allowed subsidies they will simply stop producing. No one is going to producing something they're not getting a profit from.without production from the farmers the supply of food would dramatically decrease. If weather dared to step in, it would name things even worse than it already us.
ReplyDeleteBillionaires go into farming to receive subsidies. Basically, the subsidies they receive are more than the cost of the farm and the people they pay to run it. Of course the billionaires don't need it. If the government stopped giving subsidies however, many farmers would produce far less or even go out of business completely because they are not billion aires and can't afford to produce as much. This would drive the price of goods up very high because the supply would go down.
ReplyDeleteThere are a lot of billionaires in the farming business because Congress recently altered the country's farm bill, cutting billions from the food stamp program over the next decade. That comes after more than a decade of the same bill providing millions in farm subsidies to billionaires' businesses, according to a report released Thursday by the Environmental Working Group, a left-leaning think tank. Those billionaire subsidies would only increase in the coming years, the report found. They receive many subsidies.If the subsidies were taken away from the farmers, the food supply would probably decrease, since earning extra money from producing an extra bushel of corn or barley is taken away.
ReplyDeleteBillionaires find themselves drawn to the farming industry due to the amount of profit they receive based on subsidies they received from the government, which usually more than cover the cost of production and the farm itself. It is obvious that billionaires do not need the subsidies. However, if the government decides to disallow subsidies, the farming industry would take a turn for the drastic, as many farmers who are not billionaires cannot produce as much as people with billions could. Some may even go out of business. The supply would be lowered, and the price of goods that we need to survive would skyrocket.
ReplyDelete