Individual farmers are a population that have continually dwindled due to a variety of factors. Among the leading factors are technological advancements in machinery and the increasing concentration of large firms in agriculture. Most forms of agriculture are extremely concentrated, putting a lot of pressure on smaller farmers. Furthermore, small farms are a rarity, and most enter agreements with larger corporations. The power of the farming industry should not be underestimated. Look at all of the commercials on primetime television promoting cotton or high fructose corn syrup. These ads aren't exactly funded by individual farmers.
Interestingly the actual farming of goods is probably the closest thing the US has to a competitive market. Farm sizes are still a tiny part of the overall market. What ends up happening though is that farmers are squeezed between the monopoly power from corporations selling them the technology they need to stay competitive (companies like Monsanto) and then the monopsony power of large corporations buying their products to make things like high fructose corn syrup. So yes there is a lot of market power in the agriculture industry, but actual farmers typically do not wield it. Which I think makes this story a lot sadder honestly.
I'm glad to see that Des Moines local news is covering this seemingly insignificant story because it opens up and exposes a much larger issue. Agricultural population, as Anthony said, has been dwindling for centuries due to industrialization, however, we've also seen corporations absorb smaller farms and gain larger shares of the market. This allows them to influence production and distribution of certain items and sway Congress to pass legislation in favor of certain crops over others. Corn is very heavily subsidized, which results in many products containing corn, usually in unhealthy processed forms like high fructose corn syrup. Unfortunately, not only does this influence the American diet, it also creates situations where states like Iowa heavily depend on corn production. Frankly, I don't mind corn, but it gets way to much government support, maybe spinach instead?
Individual farmers are a population that have continually dwindled due to a variety of factors. Among the leading factors are technological advancements in machinery and the increasing concentration of large firms in agriculture. Most forms of agriculture are extremely concentrated, putting a lot of pressure on smaller farmers. Furthermore, small farms are a rarity, and most enter agreements with larger corporations. The power of the farming industry should not be underestimated. Look at all of the commercials on primetime television promoting cotton or high fructose corn syrup. These ads aren't exactly funded by individual farmers.
ReplyDeleteInterestingly the actual farming of goods is probably the closest thing the US has to a competitive market. Farm sizes are still a tiny part of the overall market. What ends up happening though is that farmers are squeezed between the monopoly power from corporations selling them the technology they need to stay competitive (companies like Monsanto) and then the monopsony power of large corporations buying their products to make things like high fructose corn syrup. So yes there is a lot of market power in the agriculture industry, but actual farmers typically do not wield it. Which I think makes this story a lot sadder honestly.
DeleteI'm glad to see that Des Moines local news is covering this seemingly insignificant story because it opens up and exposes a much larger issue. Agricultural population, as Anthony said, has been dwindling for centuries due to industrialization, however, we've also seen corporations absorb smaller farms and gain larger shares of the market. This allows them to influence production and distribution of certain items and sway Congress to pass legislation in favor of certain crops over others.
ReplyDeleteCorn is very heavily subsidized, which results in many products containing corn, usually in unhealthy processed forms like high fructose corn syrup. Unfortunately, not only does this influence the American diet, it also creates situations where states like Iowa heavily depend on corn production. Frankly, I don't mind corn, but it gets way to much government support, maybe spinach instead?