Bonus Post: More on the Farm Bill

My friend with a lot more knowledge about agriculture than me points why the Farm Bill is so screwed up, its not about farm policy, from a recent story on the bill

Ways and Means Committee Chairman Charles B. Rangel , D-N.Y., wants more funding for nutrition if he’s going to agree to find scarce offsets to support about $10 billion more in funding, Senate Agriculture Committee Chairman Tom Harkin said.

“If they give us more money, sure,” said the Iowa Democrat. “We have scrubbed really hard” to get the $9.5 billion in funding for food stamps and other nutrition programs that Rangel’s New York City constituents rely on, Harkin said.

Contrasting Agricultural Policies: Cry for the Argentine Farmers

Although, it probably is not getting a lot of press the US farm bill is currently being debated in the Senate. As I see it the main debates are how much subsidies to give out and who should get them. In particular, farmers of food stuff crops like corn, wheat, and soybeans get subsidies while growers of fruit do not. Take this NY Times OP Ed from a Minnesotan farmer, where the farmer complains that he cannot afford land prices because they are inflated by grain growers getting subsidies. Another point of contention is that most payments go to large farmers, highlighted here by the USDA. So in the US we are debating how much to pay farmers.

In Argentina, the debate is over how much in taxes to charge exporting farmers. As this LA Times article details strikes by farmers over a tax increase on Soy Bean exports. The strikes have led to food shortages, although farmers are currently taking a break from their strike because of this.

So why would Argentina place high taxes on their farm exports. The government needs money and it is difficult to collect taxes from individuals, but exports are easier to tax if they must go through major ports they are easier to verify.