Comment by lithocarpus
13 hours ago
This is true to a degree, but, if big ag subsidies were phased out, small local farms would have a better chance of being viable.
I guess you could say this raises prices, but on the flip side, small farm prices could start to come down if they were more viable.
> if big ag subsidies were phased out, small local farms would have a better chance of being viable.
Maybe. The subsidies that we always hear about is a portion of insurance premiums paid by the government. Presumably if the government pulled out of the subsidy, the risk/reward of insurance would tilt towards not having it. Many farmers already forego having insurance even with the reduced price.
Which would mean nothing until something bad happens. But when something does happen, that means some big farms could collapse. But it would also mean small farms are just as likely to collapse right beside.
I expect you are ultimately right: That once the collapses occur, it would be hard to rebuild a large farm before it ends up collapsing once more, leaving farms unable to ever grow beyond being small again. But is that what you imagine for small farms?
Of course, that's all theoretical. In the real world, the government wouldn't let the food supply fall apart like that. If farms didn't have insurance, it would simply come in and bail them out when destructive events occur. It is a lot simpler, and no doubt cheaper (the subsidy is offered on the condition of being willing to give production data back in return), to implement a solution ahead of time rather than panicking later.