Tag: landowners

Farm Subsidies Benefit Landowners

Almost half of America’s farmland is operated by someone other than the owner. Critics of farm subsidies often point to examples of famous wealthy landowners receiving handouts as a reason to end the federal government’s agriculture gravy train. Notable recipients have included Ted Turner, Larry Flynt, Charles Schwab, and numerous members of Congress.

While policymakers justify their support for farm subsidies in the name of “protecting farmers,” a new academic study describes how landowners are often the real winners. Farm subsidies get “capitalized” into the price of farm land, pushing up land prices. As a result, those farmers who lease land from landowners at the inflated prices end up having a substantial share of their subsidy benefits effectively canceled out.

From the paper:

In all, the results confirm that government payments exert a significant effect on land values. The (marginal) rates of capitalization suggest that in the current policy context, a dollar in benefits typically raises land values by $13-$30 per acre, with the response differing substantially across different types of policies. This response certainly suggests that agents expect these benefits to be sustained for some time. In terms of the implications for the distribution of farm program benefits, our results confirm that a substantial share of the benefits is captured by landowners.

The authors’ conclude that the rhetoric exhibited by supporters of farm subsidies doesn’t always match the reality:

Policy rhetoric often justifies Farm Bill expenditures with the argument that impoverished farmers are in need of governmental support to remain in business. This view is pervasive outside of Washington. For example, consider the annual “Farm Aid” events intended to draw attention to the plight of the American farmer. Our analysis challenges this view. We demonstrate that land owners capture substantial benefits from agricultural policy. This is particularly problematic given that in many cases land owners are distinct from the farmers whose plight we are told we should be concerned with.

See this Cato essay for more on agriculture subsidies.

Good News: No Eminent Domain for Flight 93 Memorial

Whether the federal government should be building a $58 million memorial to the heroic passengers on United flight 93, who thwarted the plot to crash a fourth plane on September 11, is a question that has yet to be asked in Washington.  But it clearly is improper for the authorities to acquire land for the memorial through eminent domain.

Thankfully, Washington has backed down from its plans to seize the property. 

Reports Tony Norman of the Pittsburgh Post-Gazette:

Yesterday, the U.S. government announced that it wouldn’t resort to eminent domain to seize land in Somerset, Pa for the proposed Flight 93 memorial. This is good news for fans of the concept of private property. When the National Park Service announced that it would seize the land from the seven property owners for the memorial rather than pay the landowners what they were asking for the lots, you didn’t have to be a libertarian to know something unjust was happening. The National Park Service was engaging in behavior that was fundamentally un-American, anti-democratic and an affront to the concept of property rights. Sure, the U.S. Supreme Court affirmed the government’s right to do such a thing in the name of the public good, but it was questionable whether a memorial to a plane load of heroes that crashed in a field on 9-11 outweighs the rights of the current owners to use the land as they see fit. Fortunately, the government has declined to grab the final 500 acres it needs for its $58 million, 2,200 acre 9-11 memorial and national park.

The United 93 passengers embody the best of America.  Commemorating their heroism should be done in a manner that best reflects the values they were defending.