The American farm economy is characteristically described by journalists, farmers, and government officials as plunging headlong into disaster. Clearly, much of the agricultural community is facing severe economic problems, and government relief programs seem unable to significantly improve the situation.
Farm programs are almost incredibly complex.
A market economy, in the absence of government guarantees at taxpayers expense, does not guarantee profits or business success. The supply of particular business services would normally equilibriate with demand, and in the process, resources would gravitate to their highest valued and most efficient uses. Since the 1930s, a complex web of federal farm subsidy programs has been woven into place, to try to shield farmers from market instabilities and to try to guarantee some measure of economic continuity. These programs may have created more problems than they've solved, and one would be hardpressed to find any clear-cut, lasting benefits. To view this entire document please click here .