We're going to need another justification than "cheap food" to continue our subsidies with farm income for many growers at record levels. When disposable income stagnates with slow growth, our oft-repeated statistic about "less of their income" could shoot up significantly, revealing it is 90% about income and 10% about commodity prices.
Grain farmers are also going to have to contend with increasingly restive livestock producers.
I think payment limits and means-testing would be a strategic compromise to consider right now. Ya gotta know when to fold 'em.
Monday, January 28, 2008
John Phipps Counsels Moderation
John Phipps comments: