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rent, economies of size, and government payments
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paul the original
Posted 8/18/2007 16:02 (#189298 - in reply to #189082)
Subject: Re: rent, economies of size, and government payments


southern MN
Subidies mostly move straight to the land owner. While they help the big outfit with gobs of money, they help the little outfit with dribbles of money. Doesn't have too much effect tho, as it only goes to bigger land prices/rents. Doesn't so much help or hurt big or small.

The insurance subsidy is the one that hurts small farmers deeply. Farming used to be a feast or famine thing, and those in the business had to plan accordingly. The insurance levels that playing field. No one lends money unless they can chart out a level playing field. Used to be the big outfit had to go it alone on affording things. The little fella could play the highs & lows a little better.

With the govt subsidy of crop insurance, I see that part of it tipping the scales greatly to the big operators. Less risk.

--->Paul
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