|
Originally published on Substack.
When USDA Secretary Brooke Rollins announced in Kansas City that the federal government would purchase 417,000 metric tons of corn and sorghum for international food aid, many farmers applauded. After years of rising costs--fuel up 30%, machinery up 45%, fertilizer up 37%, and interest expenses up 73%—any relief sounds welcome. But let’s ask the harder question: why do farmers need rescuing in the first place? The answer is simple but uncomfortable: Washington is trying to fix what it broke by bailing out farmers rather than fix what it first broke with tariffs and trade protectionism. Tariff–Bailout Feedback Loop President Trump says tariff revenue will once again be used to “help” farmers—just as his administration spent $23 billion in farm subsidies during the last trade war. That’s a dangerous cycle:
That’s not capitalism—it’s economic whiplash. Or as I like to put it: Washington plays both arsonist and firefighter. Tariffs are just another tax on Americans. They make inputs more expensive, reduce exports, and weaken our global competitiveness. Farmers—who export more than $175 billion in crops and livestock each year—feel the pain first. Kansas as a Cautionary Tale Kansas illustrates the problem perfectly. The state exported $4.75 billion in agricultural goods in 2024, from wheat and sorghum to beef and soybeans. However, during the 2018–2019 trade war, retaliatory tariffs resulted in a nearly $1 billion loss in annual farm exports. Now, new tariffs are expected to reduce agricultural sales abroad by another 10%, while equipment and fertilizer costs are projected to rise by up to 20%. That’s not a path to prosperity—it’s an economic treadmill. And even at the state level, Kansas has repeated the same pattern: big subsidies, such as the $829 million Panasonic megadeal, missed tax-relief triggers, and tens of thousands of residents voting with their feet for better opportunities elsewhere. Cronyism and protectionism don’t build growth—they bury it. The Free-Market Alternative Farmers don’t want handouts. They want a fair shot to compete. Free markets, not government bailouts, drive prosperity. When trade flows freely, both sides win. When the government interferes, everyone pays. Every “bailout dollar” comes from the productive private economy—robbing tomorrow’s innovation to cover today’s mistakes. If Washington truly wants to help farmers, it should:
Let farmers do what they do best: feed the world. Concluding Thoughts Prosperity doesn’t come from Washington’s generosity. It comes from freedom, trade, and trusting people to make their own choices. Farmers don’t need protectionism or bailouts—they need free markets and fiscal restraint that let them grow without interference. The lesson for every policymaker, from Topeka to D.C., is clear: get out of the way and let people prosper.
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Vance Ginn, Ph.D.
|
RSS Feed