"Programs that pay farmers not to farm often devastate rural areas. The reductions hurt everyone from fertilizer companies to tractor salesmen"
About this Quote
Dick Armey distills a classic free-market critique of agricultural supply controls into a blunt economic lesson about ripple effects. Paying farmers not to plant reduces far more than harvests; it drains the circulatory system of rural economies. When acres sit idle, farmers buy less seed, fertilizer, and fuel. They postpone tractor upgrades, skip equipment repairs, and scale back borrowing. Those cutbacks flow to the local co-op, the implement dealer, the mechanic, the banker, the trucker, the grain elevator, and, ultimately, to the school and the cafe on Main Street. A policy designed to stabilize prices or conserve land becomes, at street level, a contraction in community activity.
The backdrop is decades of U.S. programs that tried to curb overproduction, from New Deal acreage reductions and the Agricultural Adjustment Administration to later set-asides and the Conservation Reserve Program. Policymakers sought to bolster prices, prevent soil exhaustion, and soften boom-bust cycles. Armey, a Texas economist and later House Majority Leader known for advocating market solutions, argues that such interventions ignore how rural towns depend on throughput. Agriculture is less a solitary enterprise than a network of interlinked businesses; shrink the hub and the spokes wobble.
There is a paradox at work. Reducing supply can lift commodity prices, yet the volume of commerce falls. The farmer may receive checks for idled acres, but input suppliers lose sales, labor opportunities decline, and younger families drift away. Land can consolidate into fewer hands, deepening the hollowing-out of communities. Even conservation-minded set-asides, valuable for soil and habitat, carry trade-offs when alternative economic activity is scarce.
Armey’s point is not only fiscal but social. Rural vitality grows from sustained, productive engagement with the land. Policies that disconnect farmers from production risk turning short-term market management into long-term community attrition, a reminder that well-intended macro fixes can misfire at the micro level where livelihoods are actually made.
The backdrop is decades of U.S. programs that tried to curb overproduction, from New Deal acreage reductions and the Agricultural Adjustment Administration to later set-asides and the Conservation Reserve Program. Policymakers sought to bolster prices, prevent soil exhaustion, and soften boom-bust cycles. Armey, a Texas economist and later House Majority Leader known for advocating market solutions, argues that such interventions ignore how rural towns depend on throughput. Agriculture is less a solitary enterprise than a network of interlinked businesses; shrink the hub and the spokes wobble.
There is a paradox at work. Reducing supply can lift commodity prices, yet the volume of commerce falls. The farmer may receive checks for idled acres, but input suppliers lose sales, labor opportunities decline, and younger families drift away. Land can consolidate into fewer hands, deepening the hollowing-out of communities. Even conservation-minded set-asides, valuable for soil and habitat, carry trade-offs when alternative economic activity is scarce.
Armey’s point is not only fiscal but social. Rural vitality grows from sustained, productive engagement with the land. Policies that disconnect farmers from production risk turning short-term market management into long-term community attrition, a reminder that well-intended macro fixes can misfire at the micro level where livelihoods are actually made.
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| Topic | Business |
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