Hands off approach by the government
Our representatives in Congress are close to passing a $300 billion farm bill. They might look at a bit of history to understand how unnecessary the bill really is.
Do you recall the great Tobacco settlement of several years ago? This agreement between US tobacco firms and state governments provided billions of dollars to state treasuries as compensation for the harmful effects of tobacco.
A little celebrated provision of this settlement also dramatically altered the state of tobacco farming in the United States. With the agreement, the US Govenrment no longer controlled, susidized or regulated the amount of acres of tobacco that could be planted each year. The prior government control was done to help "prop-up" tobacco prices and "preserve" the family farm. This had been the case for decades.
Well, it's now five years, since the government got out of regulating tobacco farmers (and subsidizing them) and the results are in. Tobacco farming has now expanded well beyond the traditional areas of Kentucky and Virginia. In fact, there are farmers now growing tobacco in Southern Illinois. And all of them are doing it profitably.
When the government controls were lifted, farmers were able to grow their crops more efficiently. At the same time, they were able to sell their product into the overseas marketplace (a growing area of tobacco use). And the government is no longer wasting tax dollars "propping up" the industry.
As with so many aspects of the US economy, for long term success, "hands off" beats a "hand out" almost everytime.
Do you recall the great Tobacco settlement of several years ago? This agreement between US tobacco firms and state governments provided billions of dollars to state treasuries as compensation for the harmful effects of tobacco.
A little celebrated provision of this settlement also dramatically altered the state of tobacco farming in the United States. With the agreement, the US Govenrment no longer controlled, susidized or regulated the amount of acres of tobacco that could be planted each year. The prior government control was done to help "prop-up" tobacco prices and "preserve" the family farm. This had been the case for decades.
Well, it's now five years, since the government got out of regulating tobacco farmers (and subsidizing them) and the results are in. Tobacco farming has now expanded well beyond the traditional areas of Kentucky and Virginia. In fact, there are farmers now growing tobacco in Southern Illinois. And all of them are doing it profitably.
When the government controls were lifted, farmers were able to grow their crops more efficiently. At the same time, they were able to sell their product into the overseas marketplace (a growing area of tobacco use). And the government is no longer wasting tax dollars "propping up" the industry.
As with so many aspects of the US economy, for long term success, "hands off" beats a "hand out" almost everytime.
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