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Posts Tagged ‘Department of Agriculture’

Some departments of the federal government should be shut down because of federalism. High on that list would be the Department of Education and Department of Transportation.

Other departments should be shut down because there is simply no role for any government involvement at any level.

I usually cite the Department of Housing and Urban Development as an example, but the Department of Agriculture also should be terminated.

It’s a rat’s nest of special interest favors. I’ve previously written about inane intervention to enrich Big Dairy, Big Sugar, and Big Corn.

But I confess that I was unaware of Big Cranberry.

The Wall Street Journal opines about the nonsensical nature of cranberry intervention.

As you dip into the Thanksgiving cranberry sauce, here’s a tart story that may make you want to drain the bog. This fall the U.S. Agriculture Department gave cranberry growers its approval to dump a quarter of their 2018 crop. Tons of fruit and juice—in the ballpark of 100 million pounds—will be turned into compost, used as animal feed, donated or otherwise discarded. The goal is to prop up prices.

Needless to say, there’s nothing about propping up cranberry prices in Article 1, Section 8, of the Constitution.

This is also a common-sense issue, as the WSJ explains.

The USDA rule caps growers’ production based on their historical output, with some exemptions. Small cranberry processors aren’t covered, and neither are those that don’t have inventory left over from last year. The trouble is that this reduces everyone’s incentive to downsize… Among the many economic perversities of agricultural policy, this is merely a vignette. Still, America is growing 100 million pounds of cranberries and then throwing them away to raise prices per government order. Wouldn’t it be better—and easier—to let the market work?

By the way, Trump’s protectionism is also part of the problem.

President Trump’s trade war hasn’t helped. About a third of production usually goes overseas. But in June the European Union put a 25% tariff on U.S. cranberry-juice concentrate in retaliation for U.S. steel tariffs. A month later, China bumped its tariff on dried cranberries to 40% from 15%. Mexico and Canada also added duties.

A typical Washington cluster-you-know-what.

Though I don’t recommend thinking about it too much, lest you get indigestion.

The solution is to copy New Zealand and get rid of all agriculture handouts.

P.S. If you like Thanksgiving-themed libertarian humor, the image at the bottom of this column augments the image to your right.

P.P.S. And if you like Thanksgiving-themed videos with libertarian messages, here’s one option and here are two others.

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Of all the senseless things that happen in Washington, farm subsidies are especially foolish. They are a classic example of “public choice” in action, with a handful of rich (and well-connected) producers getting big bucks by ripping off consumers and taxpayers.

The entire Department of Agriculture should be abolished. Yesterday, if possible.

If we first need a show trial, dairy subsidies could be the main example.

Investor’s Business Daily opines about the program.

In what other industry would you find producers continuing to ramp up production while demand slides, and then stuffing the growing pile of surplus into warehouses, hoping the federal government will buy some of it? What makes the dairy industry different is decades of government efforts to “support” dairy farmers with various subsidy schemes. …By interfering with pricing signals, the effect of these subsidies has been to encourage production, almost regardless of market demand. …Dairy farmers say they need these programs to survive. We doubt that. Like every other industry, they’d learn to adapt to market changes. In the meantime, ask yourself this question: Why should taxpayers hand over their hard-earned money to protect other people’s jobs in a declining industry?

Here’s a one-minute video from the American Enterprise Institute that gives a quick overview of how government doesn’t allow markets to function.

Congress currently is contemplating a new farm bill. As you might expect, there’s pressure from agriculture lobbyists for further subsidies and handouts.

Fortunately, there is also some opposition, including a recent column in the Hill.

Like spoiled milk, market-distorting dairy industry handouts need to be thrown out. …Washington doles out enormous subsidies to the largest conventional animal agriculture industries through the farm bill. …The dairy industry…receives their millions as a straight-up handout, with no strings (or string cheese) attached. The USDA should not pick winners or losers. The government should not distort the market or continually prop up non-competitive businesses. …American taxpayers don’t need to prop up a system of socialized cheese. American consumers deserve to make their choices in a fair and equitable marketplace. This next farm bill should remedy clear instances of government waste and distortion and move beyond funneling taxpayer handouts into conventional agribusiness.

The United States is not the only nation with a corrupt and distorting system of subsidies. Similar handouts exist in Canada and have become part of NAFTA negotiations, as reported by the Wall Street Journal.

U.S. farmers are treated unfairly by the complex “supply management” system that governs Canada’s dairy market, under which the government sets milk prices and imposes quotas on domestic producers to keep supplies in check. As part of this system, Canada limits dairy imports and imposes steep tariffs of more than 200% on products that exceed those limits. President Trump has called Canada’s dairy protectionism a disgrace. …Critics say Canada’s system unfairly limits market access and distorts prices. …Canada’s 11,000 commercial farms hold substantial political sway. The bulk of them are in vote-rich pockets of rural central Canada, especially French-speaking Quebec. …Dairy farming “is a motherhood issue here,” said Jon Johnson, senior fellow at Toronto-based C.D. Howe Institute and former government trade negotiator.

There’s no question the Canadians are guilty, but the United States is hardly in a position to throw stones.

Milk supply in the U.S. has in the past been seen as a national security interest, important to the well-being of babies and children. The U.S. government, for that reason and others, has had a long and historic involvement in domestic dairy farming, with a pricing system whose roots go back to the Great Depression. U.S. dairy imports are restricted through quotas, tariffs and licensing requirements. Prices are regulated through a complex system managed by the USDA, which sets minimum prices. When prices fall below regulated minimums, farmers can apply for federal assistance.

I suppose one silver lining to all this nonsense is that dairy farmers on each side of the border now have an incentive to calculate the subsidies received by their competitors.

…the American government continues to provide massive levels of support to its agri-food sector at federal, state, and local levels. …in 2015, the American government doled out approximately $22.2 billion dollars in direct and indirect subsidies to the U.S dairy sector. …said Mr. Clark. “When it comes to farm support, the U.S. has the deepest pockets; deeper even than the European Union…” in 2015, the support granted to U.S dairy producers represented approximately C$35.02/hectolitre – the equivalent of 73% of the farmers’ marketplace revenue. …While the American dairy industry has repeatedly pointed fingers and demanded increased access to Canada’s dairy market, the extent of subsidies to the U.S. dairy industry is an 800-pound gorilla in the room.

My hope, needless to say, is that taxpayers in both nations look at these numbers and conclude that we follow the example of New Zealand and get rid of farm handouts.

Not just for dairy. Abolish the entire Department of Agriculture.

P.S. It’s a close race, but I suspect that sugar subsidies are even more corrupt than dairy subsidies.

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Government intervention is not good for economic prosperity. That general observation is both accurate and appropriate, but it might also be helpful to contemplate what sector of the economy suffers the most damage and distortion because of government.

Speaking of agriculture, let’s commemorate Valentine’s Day by exploring how politicians shower sugar producers with undeserved wealth every time one of us buys something sweet for a sweetheart.

Vincent Smith of the American Enterprise Institute shares some grim news on who is reaping unearned benefits.

Valentine’s Day is here again, and still the US sugar lobby has its hand in everyone’s wallet when they buy chocolate and other candy for their friends and families. For over four decades, the sugar lobby has managed to persuade Congress to maintain a Soviet-style supply control program that, by sharply limiting imports and curtailing domestic production, keeps US sugar prices well above free market levels. The program costs US consumers an average of about $3.4 billion every year, effectively a hidden annual tax of over $40 for a typical family of four, all to benefit fewer than 5,000 farm businesses. Further, the program raises production costs for the US food processing industry, damaging the food industry’s ability to compete in export markets and causing them to sacrifice a share of the domestic market to exporters from other countries. The impact of the US sugar program on employment for US citizens consistently has been estimated to be negative, costing the US economy between 10,000 and 20,000 jobs on a net basis. While the program creates employment for some workers in sugar refineries, it destroys far more employment opportunities in the US food processing sector by making the sector less competitive.

Two of his colleagues, John C. Beghin and Amani Elobeid, produced a detailed study on the topic for AEI. Here are the key findings.

The sugar program is a protectionist policy, which increases the domestic price of sugar above the corresponding world price. It restricts imports of raw and refined sugar, depresses world sugar prices, and substantially changes the mix of sweeteners used in processed food. Domestic markets are distorted, sugar users are effectively taxed by the program, and sugar producers are subsidized by it. The welfare transfer to sugar growers and processors is quite large in the aggregate, hovering around $1.2 billion. Losses to households are diffused, about $10 per person per year but large for the population as a whole, in the range of $2.4–$4 billion. …Gains to producers are concentrated in a few hands, especially in the cane sugar industry. Labor effects from lost activity in food industries are between 17,000 and 20,000 jobs annually.

For those who like the quantitative details, here’s a table with the most important numbers in the study.

Writing for the Federalist, Eric Peterson explains the high costs and inefficiency associated with this bit of central planning.

The history of candy canes dates back over 300 years… While this iconic symbol of Christmas saw its first mass production in America, Washington politicians have too often behaved like Scrooge, enacting policies that have sent all but one maker of this holiday classic fleeing abroad. One reason for the mass exodus is the little known U.S. sugar program. …Government interference in the sugar market comes in four flavors: Price supports, marketing allotments, import quotas, and the Feedstock Flexibility Program. …Although programs such as price supports (which mandate domestic prices for sugar at nearly double the world price) are fairly straightforward, programs such as Feedstock Flexibility are far more opaque. It allows sugar producers to sell sugar to the government at above market value, which the government then sells to ethanol producers at a loss. …Companies that need sugar for their products…can’t even import cheaper sugar from abroad thanks to import quotas that strictly limit foreign sugar. It’s no one wonder that some companies like Atkinson Candy Co have responded by moving some of their peppermint-candy production to Guatemala, where sugar is cheap and plentiful. …Consumers pay higher prices on everything from chocolate to cranberry sauce thanks to these big-government mandates, with the estimated annual costs to consumers and food manufacturers adding up to a whopping $3.5 billion annually. …Since 1997, for example, over 120,000 jobs have been lost in the sugar industry. It’s estimated for every job subsidies prop up, three are destroyed.

Notice, by the way, the consistent theme that subsidies and protectionism result in fewer jobs. This is not a surprising result for anybody who has looked at the fourth item in this column.

Let’s continue with some more analysis. The Foundation for Economic Education has a column by Ted Ellis on the program.

…for taxpayers, …sweetness doesn’t come cheap. For decades, domestic sugar producers have been protected from fair competition. In recent years, their influential lobby has ensured producers’ inflated profits through $260 million worth of federal subsidies and restrictions on fairly priced imported sugar. …these handouts rarely accrue to anyone but the industry’s largest and most well-connected players. …The National Confectioners’ Association, a trade group, agrees…that “the benefits of sugar subsidies and protections go directly to just 14 sugar beet and sugarcane producers in a few states.” …inflated prices disrupt domestic supply chains, threatening thousands of well-paying American manufacturing jobs, all while nibbling away at American taxpayers’ wallets. …the sugar program costs American businesses and consumers more than $3 billion every year. …the cost of special-interest lobbying in the sugar industry is felt most heavily by US workers laid off by companies that have been forced to move abroad, where sugar prices are cheaper. A 2006 report by the US International Trade Administration found that as many as 10,000 American jobs were lost as confectioners such as Hershey Co. and Lifesavers were forced by government-inflated domestic sugar prices to move plants out of the US. The same report found that the many jobs lost on account of federal intervention in sugar production far outweigh the few jobs saved for growers. In fact, it found that “for each one sugar growing and harvesting job saved through high US sugar prices, nearly three confectionery manufacturing jobs are lost.”

If you’re tired of reading about the senselessness of sugar subsidies, here’s a video on the topic from Reason. It has a Halloween theme instead of a Valentine’s Day theme, but that doesn’t change anything.

Let’s conclude with some hard-hitting analysis by Jim Bovard, who explains the tangled web of cronyism for CapX.

…the federal government has maintained an array of sugar import quotas and/or tariffs for most of the last 200 years. The regulatory regime has provided windfalls for generations of politicians and jobs for legions of bureaucrats while destroying more than a hundred thousand private, productive jobs. …The sugar program illustrates why politicians cannot be trusted to competently manage anything more complex than a lemonade stand. In 1816, Congress imposed high tariffs on sugar imports in part to prop up the value of slaves in Louisiana. In 1832, a committee of Boston’s leaders issued a pamphlet denouncing sugar tariffs as a scam on millions of low-paid American workers to benefit fewer than 500 plantation owners. …Despite perpetual aid, the number of sugar growers has declined by almost 50% in recent decades to fewer than 6,000. Federal policy failed to countervail the fact that the climate in the mainland U.S. is relatively poorly suited for sugarcane production. …Federal sugar policy costs consumers $3 billion a year and is America’s least efficient welfare program. In the 1980s, sugar import restrictions cost consumers $10 for each dollar of sugar growers’ income. …producing candy and many other food products is far more expensive here than abroad. Since 1997, sugar policy has zapped more than 120,000 jobs in food manufacturing… More than 10 jobs have been lost in manufacturing for every remaining sugar grower in the U.S. …The sugar lobby showers Congress with money, including almost $50 million in campaign contributions and lobbying between 2008 and 2013. In return, members of Congress license sugar growers to pilfer consumers at grocery checkouts and rob hardworking Americans of their jobs.

That last segment is the key. Sugar subsidies are a class case of “public choice,” with special interests and politicians both benefiting while ordinary people pay the price.

There are many reasons to shut down the Department of Agriculture. But it’s hard to imagine a bigger reason than getting rid of handouts for Big Sugar. Maybe ultra-corrupt ethanol handouts are even worse, but that’s a judgement call.

P.S. Since today is Valentine’s Day, here’s a very topical explanation of why unfettered prices are desirable.

P.P.S. And here’s a Libertarian Valentine’s Day. Or, for my statist readers, here’s Obama’s vision of Valentine’s Day.

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I’ve argued before that the Department of Housing and Urban Development (HUD) should be the top target of those seeking to shut down useless and counterproductive parts of the federal government.

And if President-Elect Trump’s choice for HUD Secretary, Ben Carson, is as sound on housing issues as he is on tax issues, presumably he will work to close down the bureaucracy that he’ll soon be overseeing.

But I just read a Wall Street Journal column about agriculture subsidies that has me so agitated, that I may change my mind and make the Department of Agriculture my top target for elimination. Here’s some of what Jim Bovard wrote.

President-elect Donald Trump’s vow to “drain the swamp” in Washington could begin with the Agriculture Department. …Farmers will receive twice as much of their income from handouts (25%) this year as they did in 2013, according to the USDA. …big farmers snare the vast majority of federal handouts. According to a report released this year by the Environmental Working Group, …“the top 1 percent of farm subsidy recipients received 26 percent of subsidy payments between 1995 and 2014.” The group’s analysis of government farm-subsidy data also found that the “top 20 percent of subsidy recipients received 91 percent of all subsidy payments.” Fifty members of the Forbes 400 list of wealthiest Americans have received farm subsidies, according to the group, including David Rockefeller Sr. and Charles Schwab.

Indeed, agriculture subsidies are basically a huge transfer of wealth from the poor to the rich.

…in 2015 the median farm household had a net worth of $827,307. That includes a great many residential, gentlemen and hobby farmers. The largest class of farmers—those who produce most farm products and harvest the largest share of the subsidies—have a median net worth of $2,586,000. By contrast, the median net worth for American households in 2013 was $81,200, according to the Federal Reserve.

In his column, Jim also explains some of the bizarre consequences of various specific handout programs, including the fact that American taxpayers have forked over $750 million to Brazil in order to continue huge (and impermissible, according to our trade commitments) subsidies to American cotton producers.

But the sugar subsidies are probably the most economically insane.

The U.S. maintains a regime of import quotas and price supports that drive U.S. sugar prices to double or triple the world price. Since 1997 Washington’s sugar policy has zapped more than 120,000 U.S. jobs in food manufacturing, according to a 2013 study by Agralytica. More than 10 jobs have been lost in manufacturing for every remaining sugar grower in the U.S.

Let’s look at some more evidence, this time dealing with dairy subsidies.

Charles Lane of the Washington Post wrote earlier this year about America’s government-caused cheese problem.

…as of March 31, 1.19 billion pounds had accumulated in commercial cold-storage freezers across the United States, the largest stockpile ever. …each American would have to eat an extra 3 pounds of cheese this year, on top of the 36 pounds we already consume per capita, to eliminate the big yellow mountain.

Why is there something as silly as a giant stockpile of cheese?

If you’re guessing it’s the result of a foolish government policy, you’d be right.

… the U.S. government has a long-standing pro-cheese-eating policy, which grew out of the need to do something with the subsidized excess of milk products generated by federal pro-production dairy policy… Two decades ago, in fact, the Clinton administration’s Agriculture Department helped form a promotional organization, Dairy Management Inc., funded by a congressionally authorized, federally collected dues requirement for dairy producers. Its $140 million annual budget has helped develop such fast-food items as Pizza Hut’s cheese-topped crust and Taco Bell’s double steak quesadillas, as well as cheesy pizzas for the federal school lunch program. …dairy farms are protected by a subsidized insurance program in the 2014 Farm Bill.

What’s the answer to this mess?

Well, even an editorial writer for the leftist Washington Post recognizes that markets, rather than subsidies, should determine cheese production.

In the long run, everyone — consumers, producers, middlemen, grocers — would probably be better off if governments just left the dairy market to its own devices. And a lot of other markets, too.

By the way, since we’re on the topic of subsidies to the dairy industry, a Bloomberg column exposes some of the perverse consequences of government intervention.

…some farmers tried to limit the supply of milk by killing off their own cows. No, you read that correctly. This mysterious state of affairs was revealed in a nationwide class-action lawsuit against dairy cooperatives, groups of farmers who pool their supplies but, as a whole, serve as middlemen between the farmers and dairy processors. …The “herd retirement program,” as it was called, was led by Cooperatives Working Together, run by the lobbying group National Milk Producers Federation, and supported by farms producing almost 70 percent of America’s milk. …The path that leads to killing perfectly good dairy cows begins with a 1922 law, the Capper-Volstead Act. The statute was designed to protect both dairy farmers and consumers from profiteering middlemen.

This story actually is a perfect storm of government stupidity. The federal government has programs that subsidize the dairy industry. That then leads to overproduction. Producers respond to overproduction with a plan to kill cows, which somehow triggers antitrust intervention by the government.

Heaven forbid we actually get the government out of the business and simply allow markets to work!

And if antitrust laws and agriculture subsidies are a bad combination, then you won’t be surprised to learn that foreign aid and agriculture subsidies are another bad combination. In other words, two negatives don’t make a positive, as explained by Jim Bovard earlier this year in another column for the Wall Street Journal.

The Obama administration’s plan to dump a million pounds of surplus peanuts into Haiti at no cost has sparked a firestorm from humanitarian groups… Haiti has about 150,000 peanut farmers. The industry is “a huge source of livelihood” for up to 500,000 people, Claire Gilbert of Grassroots International told NPR, “especially women, if you include the supply chains that process the peanuts.” …the Peasant Movement of Papaye, denounced the peanut donation as “a plan of death” for the country’s farmers. …American aid has a sordid record. In 1979 a development consultant told a congressional committee: “Farmers in Haiti are known to not even bring their crops to market the week that [food aid] is distributed since they are unable to get a fair price while whole bags of U.S. food are being sold.” …After the 2010 earthquake, Haiti’s president, René Préval, pleaded with the U.S. to “stop sending food aid so that our economy can recover and create jobs.” Former President Bill Clintonpublicly apologized the same year for the devastating impact of subsidized U.S. rice imports: “I have to live every day with the consequences of the lost capacity to produce a rice crop in Haiti to feed those people, because of what I did.”

The peanut program may be even more inanely destructive than the sugar program.

The real culprit here are federal peanut programs with an almost 80-year record as one of Washington’s most flagrant boondoggles. Subsidies have encouraged farmers to overproduce and then dump surplus peanuts on the USDA, which winds up stuck with hundreds of millions of pounds. That food has to go somewhere, and the department sees Haiti as the ticket. Food-aid policies have long been driven not by altruism, but by bureaucratic desperation to dispose of the evidence of failed farm policies. …The cost of peanut subsidies is predicted to rise 10-fold between 2015 and next year, reaching $870 million—which approaches the total farm value of the whole U.S. peanut crop itself. The USDA expects to spend up to $50 million a year to store and handle surplus peanuts, and industry experts are warning that federally-licensed warehouses might not have enough space to hold the next crop.

Though this humorous image reminds me that ethanol handouts also may be the most counterproductive and wasteful agriculture subsidy.

Agriculture subsidies are bad for taxpayer and bad for consumers. They are a corrupt transfer of unearned wealth to special interest groups.

P.J. O’Rourke came up with the only appropriate solution to this mess.

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I’ve written about how statist policies help the rich and hurt the poor.

And I’ve also pontificated on the destructive and foolish subsidies dispensed by the execrable Department of Agriculture.

Now let’s mix those two issues (though I hasten to add that this isn’t like math…two negatives don’t make a positive.

Here’s an infographic from the American Enterprise Institute showing how farm programs are a (yet another) perverse example of poor-to-rich redistribution.

I particularly like the part about 42 cents of administrative cost to give away 90 cents of other people’s money.

Actually, let me rephrase. I’m horrified and upset that we have this horrible system, so I only “like” that part of the infographic in the sense that it’s an effective way of showing the inefficiency, venality, and stupidity of government redistribution programs.

And don’t forget that if it’s bad to redistribute from rich to poor, it’s downright evil and despicable to redistribute from poor to rich.

P.S. On a different topic, I can’t resist sharing a few excerpts from a story out of Missouri.

Lobbyists who have sex with a Missouri lawmaker or a member of a lawmaker’s staff would have to disclose it to the Missouri Ethics Commission under a bill introduced Wednesday in the Missouri House. …sexual relations would have to be included on monthly lobbyist gift disclosure forms.

And you thought this cartoon was merely satirical.

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I may have to change my mind. When asked a few years ago to pick which department in Washington most deserved to be eliminated, I chose the Department of Housing and Urban Development.

And HUD unquestionably is a cesspool of waste, so it certainly should be shuttered.

But the more I read about the bizarre handouts and subsidies showered on big agribusiness producers by the Department of Agriculture, the more I think there’s a very compelling argument that it should be at top of my list.

Indeed, these giveaways are so disgusting and corrupt that not only should the department be abolished, but the headquarters should be razed and then the ground should be covered by a foot of salt to make sure nothing ever springs back to life.

That’s a bit of hyperbole, I realize, but you’ll hopefully feel the same way after today. That’s because we’re going to look at a few examples of the bad results caused by government intervention.

To get an idea of the Soviet-style nonsense of American agricultural programs, a Reuters report on the peanut programs reveals how subsidies and intervention are bad news for taxpayers and consumers. Here’s the big picture.

A mountain of peanuts is piling up in the U.S. south, threatening to hand American taxpayers a near $2-billion bailout bill over the next three years, and leaving the government with a big chunk of the crop on its books. …experts say it is the unintended consequence of recent changes in farm policies that create incentives for farmers to keep adding to excess supply.

And here’s a description of the perverse and contradictory interventions that have been created in Washington.

First, the U.S. Department of Agriculture (USDA) is paying farmers most of the difference between the “reference price” of $535 per ton (26.75 cents per lb) and market prices, now below $400 per ton. A Nov. 18 report to Congress estimates such payments this year for peanuts exceed those for corn and soybeans by more than $100 per acre. Secondly, government loan guarantees mean once prices fall below levels used to value their crops as collateral, farmers have an incentive to default on the loans and hand over the peanuts to the USDA rather than sell them to make the payments.

Gee, what a nice scam. Uncle Sam tells these farmers welfare recipients that they can take out loans and then not pay back the money if peanut prices aren’t at some arbitrary level decided by the commissars politicians and bureaucrats in Washington.

In other words, assuming the peanut lobbyists have cleverly worked the system (and unfortunately they have), it’s a license to steal money from the general population by over-producing peanuts. And we’re talking a lot of peanuts.

Through forfeitures, the USDA amassed 145,000 tons of peanuts from last year’s crop, its largest stockpile in at least nine years, according to data compiled by Reuters. …That stockpile is enough to satisfy the average annual consumption of over 20 million Americans – more than the population of Florida – and puts the administration in a bind. …As peanut carryover inventories are forecast to hit a record of 1.4 million tons by end-July 2016 and as loans begin to come due next summer, farmers are expected to fork over more peanuts to the USDA.

Moreover, because the perverse interaction of the various handouts, there’s no solution (other than…gasp!…allowing a free market to operate).

Storing the peanuts in shellers’ and growers’ warehouses comes at a cost. Selling them could depress the market further and in turn would add to the price subsidy bill.

Now let’s shift gears and look at another sleazy and corrupt example of agricultural welfare.

The Des Moines Register is reporting that corn growers and other beneficiaries of the ethanol program are working to cement their place at the public trough.

Iowa’s billion-dollar ethanol industry is turning up the heat… America’s Renewable Future, a bipartisan political group backed by top Iowa elected officials and people in agriculture and the ethanol industry, is in the midst of a million-dollar ad campaign to exert pressure on candidates ahead of the Iowa caucuses, supporting candidates who back the Renewable Fuel Standard and criticizing those who denounce it.

Ethanol is a particularly evil handout, encompassing regulatory mandates, special tax preferences, trade barriers, and other forms of subsidies.

All this is necessary because it makes no economic sense to turn corn into fuel. But with the right amount of goodies from Washington, dumb things suddenly become “profitable.”

And to maintain the flow of undeserved loot, the moochers are applying pressure.

Patty Judge, co-chair of America’s Renewable Future and a former Iowa agriculture secretary, said the group has signed up 45,000 people who have pledged to look closely at how the candidates stand on the Renewable Fuel Standard when they vote in the Iowa caucuses. …Iowa is the nation’s largest ethanol producer, churning out 3.9 billion gallons in 2014.

While the stories about peanuts and ethanol make for grim reading, now it’s time to get really depressed.

That’s because we’re going to take a look at a New York Times story on how Washington is dealing with ag subsidies.

In April, Republicans newly in control of Congress celebrated their agreement on a plan to save $5 trillion — that’s trillion, with a “T” — and balance the budget in a decade. …Yet as the year closes, Congress instead is planning to repeal one of the few spending cuts it has passed into law since approving that budget resolution: $3 billion over a decade from subsidies for crop insurers. …Republican leaders agreed to hold a vote next month to delete the savings after lawmakers from agricultural states complained…the agriculture committees, like most others, had no intention of turning budget-balancing numbers into policy reality by voting for cuts that would anger constituents, contributors and influential interest groups — not the $20 billion that the budget resolution recommended, nor even the $3 billion reduction from crop insurers, a cut that administration officials and Republican leaders tucked into the bipartisan budget deal Congress passed in October.

By the way, to get further depressed, this means that the terrible agreement to bust the spending caps just became even worse.

So now you’ll understand why the Department of Agriculture deserves to be eliminated.

P.S. You probably won’t be surprised to learn that the disgraced and convicted former House Speaker, Denny Hastert, had his filthy hands in the ethanol business.

P.P.S. And don’t forget that the wasteful food stamp program is part of the Department of Agriculture, largely to create an unholy alliance of rural moochers and urban moochers.

P.P.P.S. Last but not least, the clowns in Washington not only muck up how food is produced, they also can’t resist interfering in how food is consumed.

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I believe in free markets and small government, and I’m also against Washington corruption.

Which is why I want to abolish the Department of Agriculture.

And I suspect all sensible people will agree after reading excerpts from these three articles.

We’ll start with Damon Cline, who produced a searing indictment of farm welfare for the Augusta Chronicle.

Alexis de Tocqueville posited in the 19th century that America’s undoing would occur once “politicians realize they can bribe the people with their own money.” That’s exactly what the Farm Bill allows politicians to do – loot the treasury on behalf of the lobbyists, special interest groups and voting blocs who keep them fat and happy in Washington Wonderland. …The bill continues a legacy of waste that started 60 years ago when campaign contribution-sniffing politicians realized they could make the Great Depression’s temporary, emergency measures permanent. At $956 billion – a figure which outporks the infamous 2009 “stimulus” package by $200 billion – the Farm Bill is four-fifths food stamps and one-fifth agribusiness subsidies. It’s a swindle easily marketed to the masses. …Republicans from conservative farm districts forged an unholy alliance with and Democrats from liberal-leaning urban ones to funnel goodies to their core constituencies with minimal bickering. …American agriculture is dominated by sophisticated family corporate enterprises and Fortune 500 companies such as Archer Daniels Midland, Tyson Foods and Pilgrims Pride Corp. …Net profits were $131 billion last year, and the average farmer’s household income ($104,525 last year) far exceeds the U.S. average. …[A farmer] can earn up to $900,000 per year and still qualify for benefits that guarantee his revenues never fall below 86 percent of his previous years’ peak earnings. On top of that, taxpayers pay 62 percent of his business-insurance premiums. …The most heavily subsidized crops – corn, cotton, wheat, soybeans and rice – have their own lobby groups, as do many non-subsidized commodities, whose producers hope to get rolled into future farm bills (as U.S. catfish and maple syrup producers managed to do this year).

Ugh. What a disgusting scam.

Now let’s look at two different examples of how federal intervention produces awful results.

The first is from Daniel Payne’s column in The Federalist. He writes about how a discrimination case became an excuse to loot taxpayers.

The USDA is blessed with an ample amount of time and a great deal of money, which means it must forever be inventing new ways to spend the billions and billions of dollars allocated to it every year… the department has a history of both vicious incompetence, remorseless fraud and sulky hostility… The incompetence and fraud are both well-documented; perhaps the greatest combination of the two can be found in the Pigford v. Glickman case. Pigford was a class action lawsuit leveled against the USDA by black farmers who claimed they had been discriminated against while seeking federal loans from the department; the lawsuit quickly ballooned to an enormous number of claimants seeking redress for racial discrimination, which, as the New York Times reported, resulted in USDA employees finding reams of suspicious claims, from nursery-school-age children and pockets of urban dwellers, sometimes in the same handwriting with nearly identical accounts of discrimination.These are not “suspicious” claims but openly false and fraudulent ones, as any capable, mildly-intelligent adult can immediately discern. …The USDA responded to these grim revelations by cheerfully going along with the terms of the settlement: in one instance, they paid out nearly $100 million to sixteen zip codes in which “the number of successful claimants exceeded the total number of farms operated by people of any race;” in one town in North Carolina, “the number of people paid was nearly four times the total number of farms.” Was there no sensible, principled person within the entire Department willing to put an end to such absurdity? Was there anybody sitting around that might have mounted some kind of aggressive campaign to combat such naked deceit? Don’t count on it. This is the same bureaucracy, after all, that has paid out tens of millions of dollars to dead farmers. Last year alone the department’s whiz kids made over $6 billion in improper payments. Nearly 66% of improper food stamp payments were “agency-caused.”

And here’s Jim Bovard, writing in the Wall Street Journal about America’s Soviet-style central planning rules for raisins.

Under current law, the 1930s-era federally authorized Raisin Administrative Committee can commandeer up to half of a farmer’s harvest as a “reserve”—to purportedly stabilize markets and prevent gluts. …The Agricultural Marketing Agreement Act of 1937 authorized the secretary of Agriculture to appoint farmer-dominated committees to control production. The subsequent crop marketing orders were based on the New Deal philosophy of “managed abundance”—prosperity through “universal monopoly and universal scarcity.” …But the parity index was concocted by government agricultural economists in the 1920s to justify federal aid to farmers. “Parity” was based on a set ratio of farm prices to nonfarm prices, in correlation with the ratio that prevailed in 1910-14, a boom time for farmers. Because production costs for both farm and nonfarm goods radically changed, it never made any economic sense to rely on “parity” but it was a popular political ploy. …the raisin committee’s sweeping powers have failed to prevent vast swings in prices farmers receive. Many California farmers have shifted their land to other crops; the acreage devoted to raisin production has plunged since 2000. …economic illiteracy can vest boundless power in bureaucracies.

In his column, Jim also discusses a legal challenge to this insane system, so maybe there’s a glimmer of hope that this corrupt and inefficient system could be eliminated, or at least curtailed.

For what it’s worth, I still think the Department of Housing and Urban Development should be the first big bureaucracy in DC to be eliminated. But I sure won’t cry if the Department of Agriculture winds up on the chopping block first.

As P.J. O’Rourke famously advised, “Drag the thing behind the barn and kill it with an ax.”

P.S. I’ve shared many examples of anti-libertarian humor (several links available here), in part because I appreciate clever jokes and in part because I think libertarians should be self-confident about the ideas of liberty.

That being said, I definitely like to share examples of pro-libertarian humor, such as Libertarian Jesus.

And here’s the latest item for my collection.

Maybe not as good as the libertarian version of a sex fantasy, but still quite amusing.

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