Vilsack said that even though prices for most subsidized crops are high this year, "farmers still need a subsidy program to protect them from future drops in prices." He said, "I would argue that its not the 250,000 to 270,000 farmers who benefit from this structure. It is actually the rest of us that benefit." Vilsack also stated that "Americans have more disposable income than people in the rest of the world because U.S. consumers spend just 10 to 15 percent of their earnings on food."
Patrick Westhoff, an economist from the University of Missouri, disagreed and "said farm subsidies actually have only a 'very, very small' effect on what U.S. consumers pay for food" because subsidies do not affect production levels.
Vilsack stated that a safety net that acts as a risk management tool is needed.
To read the Des Moines Register story, click here.
Posted: 10/15/2010
