The steady transformation of the United States economy from a predominantly market-driven economy to a rent-seeking economy proceeds apace. Nowhere is this more evident than in the agricultural sector where, despite rising commodity prices, government accounts for an increasing percentage of industry receipts.
The chart above, showing government payments as a percentage of Virginia gross farm income, comes from a recently published report, “The Economic Impact of Agriculture and Forestry on the Commonwealth of Virginia.” (Click on the image to see a larger, clearer version of the chart.)
Who, or what, benefits from this wealth transfer? Are consumers any better off? Are Virginia farms becoming more environmentally sustainable? Are agriculture products more competitive in the global economic arena? Are we at least contributing to Ray Hyde’s retirement fund? Across the board, the answer appears to be no.