Saturday, February 27, 2010

Are Farmers Wealthy Parasites?

That's a question raised by this excerpt from a farmgate post on ERS research:
" For more than 10 years the median income for farm household has surpassed that of the average US family by a margin of anywhere from 3 to 21%, and farm family wealth has been 4 to 5 times [emphasis added] that of the average US family...."
Of course, my mother would add that farmers are land rich and money poor.  And the rest of the story/sentence is:
"but economists say farm family budgets are either very solid or very weak and 5 to 8% of farm families have negative household income each year, and there is a larger percentage of farm families in the poverty level than the percentage of non farm households. In brief, farm income is highly variable from year to year."

So, the plight of the families at the bottom end of the range is a justification for programs which help the whole range?  Are the fulminations of the greens true--that the programs favor the big farmers and not the people who are really in need?  Maybe, but consider this:
"USDA’s examination of farm households discovered that large farms, which were defined as $100,000+ in sales, had higher instances of both wealth and poverty than farms as a whole and all US families as a whole. Those farms make up only 16% of all farms, but income poverty is 22% among persons living in those households, compared to 14% for all farm families and 12% for all US families.
That counters the stereotype of small poor farms.  All in all, data to support and challenge all preconceptions.

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