Competition Comes to the US Farm Sector

Competition Comes to the U.S. Farm Sector

The United States has always supported its farmers through a number of different policies. This policy has included programs designed to distribute the nation’s land in an equitable fashion, increase productivity, raising the standard of living of American farmers and helping them to market their products (Westcott and Price, 2001). U.S. farm policy since the 1930s focused on price and income supports. Until the introduction of the 1996 Farm Bill, the price support system relied on a series of acreage limits and storage programs (Westcott and Price, 2001).

Don't use plagiarized sources. Get Your Custom Essay on
Competition Comes to the US Farm Sector
Just from $9/Page
Order Essay

The basis of the current farm policy began during the Great Depression. The focus of the original farm policy was limited; however, the past 15-20 years have seen a broadening of this policy to include many other things other than price support. (Westcott and Price, 2001). In 1985 policy changes were instituted that moved the farm industry towards a market orientation that reduced the government involvement in farm subsidy programs (Westcott and Price, 2001). This made the farm sector more closely resemble other sectors of the economy. This was a big change for farmers who were used to simply growing their product and selling it to a committed customer, the U.S. government, at a set price. Farm prices would now be market driven and subject to the laws of supply and demand rather than subject to government policy.

Farm prices over the next several years are expected to be below to slightly above commodity loan rates (Westcott and Price, 2001). Therefore loan deficiency payments, marketing loans, and the commodity loan program are expected to remain large (Westcott and Price, 2001). Analysts project that this will result in more acreage being planted while at the same time, it will significantly lower crop prices. Increased personal incomes in the United States have increased the domestic demand for farm products and there has been a greater interest in the preservation or rural landscapes (Westcott and Price, 2001).

There are many persons who have a considerable stake in farm policy decisions. The needs of small farmers (annual sales under $100,000) is vastly different than that of large farmers (sales of $250,000-$499,000). Small farmers may engage in farming as a part time activity and may be employed elsewhere. However, large farmers usually engage in farming as their only source of income. Under the new marketing program some small farmers may be forced out of business due to the fact that they simply do not have the resources to compete with large farmers. Large farmers will undoubtedly feel the impact of the marketing system as prices fall and the costs of operation continue to rise.

A study of the impact of farm policy from the years 1975-1999 revealed that in that period, farm prices have dropped. Domestic use rose over that time period. In the mean time, prices were subject to a number of global conditions such as currency risk, trade policy and price support policy. Increases in domestic demand have not been due to larger net exports of value added products containing domestically produced raw materials (Dittrich, 2002). During the period of the study, Dittrich concluded that in spite of very high government payments to farmers coupled with increased yields, the real gross income per acre is still now at record lows and was approximately 1/3 less than it was in the 1980s. This would lead us to believe that the current system is not working and producing the results that were intended.

Contrary to popular belief and media hype, the 1996 Farm bill did not eliminate government price control and price support. It does not end price support but simply reduces it for a period of seven years, after which time Congress would have to act again (Riley, 2003). Under the bill subsidies close to 4-5 billion dollars were still allocated to fulfill contracts. Of these contract the largest amount was allocated for corn at 46.22%, second was wheat at 26.26%. while oats received the lowest allocation at 0.155 (1996 Farm Bill, HR 2854).

A policy briefing regarding the effects of the current farm policy revealed that the 1996 Farm Act did improve the well being of farm families as far as income, wealth, consumption, and a balance between labor and leisure activities (Young, et. al., 2003). Land values for farmers have risen, but this has had little impact on production or trade. The 2002 Farm Act is expected to have little impact on the market as well (Young, et. al., 2003). Net Farm income is expected to be higher than under a continuation of the 1996 Farm Act.

A simulation of the 2002 Farm Act indicate that plantings will initially increase for the eight major program crops (Westcott, et. al., 2002). Westcott and associates also expects farm income to increase due to higher government payments. When prices are low the government issues market loans to supplement returns from the marketplace for the total units of production. This has the effect of raising producer incentive price that in turn affects planting decisions (Westcott, et. al., 2002).

Congressman Farr of California found the 1996 Freedom to Farm Act to be a disappointment. He states that the original intention of the bill was to dismantle the six-decade-old subsidy program that essentially amounted to a welfare system for farmers. He pointed out that the California market has survived for many years as a free market and that they do not produce subsidized crops as a staple. Instead they produce wine products, nursery products, and other crops. These markets survive or fail according to the economic principles of supply and demand (Farr, 2002).

Critiques of the Freedom to Farm Act point out that the act rewards inefficient farmers and takes valuable funding away from more profitable and better managed programs in other parts of the country. The program was supposed to wean Midwestern and southern farmers from relying on government subsidies. However, bill sponsors buckled under pressure from farmers who feared the need to learn better management techniques and how to market their products in an open market setting (Farr, 2002). Congressman Farr states, “In these times of tight fiscal constraints, we should not support farmers that are better at farming “the system” than growing crops” (Farr, 2002). Johnson criticizes the bill pointing out that it favors some crops over others and that it rewards rich and poor landowners alike, more than working farmers who produce efficiently (Johnson, 2001). Johnson states, “The nation can’t afford a farm policy that pays growers for crops that aren’t needed” (Johnson, 2001).

From a managerial standpoint, the Freedom to Farm Act has failed miserably to reduce farmer’s dependency on subsidies. It has doesn’t little to educate them as to better and more efficient production methods and makes no effort to teach them to farm sustainably. In any other market in the world, the individual entrepreneur has to find a creative way to market their product and is subject to the laws of supply and demand. They must account for market risk, inflationary risk, and currency risk in their decisions. The Midwestern farmer does not have to do this, nor do they get rewarded for good work. They get paid by the government no matter whether they do it well, or do it poorly. This is an inefficient system and the costs of the program outweigh the benefits.

The current Freedom to Farm Act has resulted in many unwanted consequences, namely the overproduction of crops, over inflated land prices, and the inflation of production costs. These programs benefit only 40% of the nations farmers (Johnson, 2001). The other sixty- percent must compete on the open market, just like everyone else. From a managerial standpoint, the money spent to prop up inefficient farmers could be better spent teaching them to compete on the open market and to employ better management techniques in their farm practices.

When the Freedom to Farm Act was first introduced, farmers converged on the White House to protest. These farmers were undoubtedly the ones who had the most to lose. But we must remember that the majority of farmers in the United States do not depend on subsidies. These farmers were loud and looked large on the television screen, but they did not represent the other sixty- percent that effectively competes in an open market system. Furthermore, these protestors made it sound as if the Freedom to Farm Act would end government subsidies. The original intent was to slowly wean these farmers from the subsidy program and to give them the tools to compete. However, as it turned out, this crowd, that looked impressive on the television screen, convinced Congress to continue the subsidy program.

So in the final analysis, we ask the question if the Freedom to Farm Act has had a positive or negative effect on farmers and the agricultural sector. The only answer can be “no” because the act did not change anything. A select few farmers still get subsidies, while the majority continues to operate on the open market in the same manner that they had been doing for many years. It seems as if the market could benefit from the free market system. The farmers that depend on the system would suffer and possibly have to change their ways. However, this may serve to eliminate the inefficient few, allowing better pricing and demand opportunities for those who are best equipped to take advantage of the situation. The Freedom to farm Act did not accomplish its goals and therefore did not change the market. From a managerial point-of-view, the current system is inefficient and is in need to severe reform. The money spent on subsidies would better help the agricultural system is spent in improving market efficiency and competitiveness, rather than acting as a welfare system that rewards failure.

Works Cited

Dittrich, John. Key Indicators Of The U.S. Farm Sector Major Crops A 27-Year History With Inflation Adjustments. Annual Update. The American Corn Growers Association

Washington, D.C. January 2002.

1996 Farm Bill: Final Version and Earlier Proposals. Text and Legislative History. Public Law

No. 104-127 (110 Stat. 888) Federal Agricultural Improvement and Reform Act of 1996

H.R. 2854 — Roberts).Library of Congress. Accessed March, 2003.

Farr, Sam, Congressman. “The 2002 Farm Bill: Another Lost Opportunity.” Congrress of the United States. House of Representatives. Washington, D.C. Published in The King City

Rustler, June 2002.

Johnson, Len. “Farming: The last welfare culture.” Chicago Tribune. September 28, 2001

Riley, John. Implications of the 1996 Farm Bill to Small and Mid-Sized Farmers. U.S. House of Representatives. Washington, DC. accessed, March, 2003.

Westcott, Paul and Price, Michael. Analysis of the U.S. Commodity Loan Program with Marketing Loan Provisions. ERS Agricultural Economic Report No. 801. 26 pp, April

Westcott, Paul, Young, Edwin, and Price, Michael. The 2002 Farm Act: Provisions and Implications for Commodity Markets. ERS Agriculture Information Bulletin No.

AIB778. November 2002

Young, Edwin, Westcott, Paul, and Efflnad, Anne. Farm policy team. Policy Briefifng. 1996

Farm Bill. / Accessed March, 2003.

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  ++1 718 717 2861         [email protected]