The Cotton Wars

The Brazilian cotton saga continues…or maybe it has ended. Our story starts with the $150 million a year that the US had been giving to Brazilian cotton growers. We were sending close to $12 million a month because Brazilian farmers…

International Trade: The Story of a Subsidy

Oddly, some US farm subsidies go to Brazil. Imagine a safety net when you think of a subsidy. If prices are too low, then growers get money from the federal government. During the 1930s Great Depression, the goal of subsidies…

The Power of the Market: Part 1

Maybe the market is more powerful than the Congress. First, some history… Hoping that farmers would earn a living wage, in 1933, the U.S. government decided to subsidize crop prices. The goal was “parity,” a level of purchasing power that…