Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Why do we want to subsidise agriculture again? http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/ The Visible Hand in Economics Thu, 29 Oct 2009 02:40:15 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: TVHE » A Stern admonition to carnivores http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21730 Thu, 29 Oct 2009 02:40:15 +0000 http://www.tvhe.co.nz/?p=4398#comment-21730 […] talked recently about why subsidising agriculture is a bad idea, so I don’t want to rehash those […]

]]>
By: Matt Nolan http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21714 Tue, 27 Oct 2009 20:10:05 +0000 http://www.tvhe.co.nz/?p=4398#comment-21714 @steve

100% agreed – society might be more willing to take on protectionism now. If this is the case then that is fine for society, I would just prefer it if they would honestly admit that it is protectionism 😉

]]>
By: reiki healing http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21712 Tue, 27 Oct 2009 18:24:02 +0000 http://www.tvhe.co.nz/?p=4398#comment-21712 I found Government policy has been spineless and shortsighted on this issue. Not only are farmers getting taxpayer dollars to cover their Kyoto costs, but other big polluters are as well.

]]>
By: steve http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21709 Tue, 27 Oct 2009 04:29:53 +0000 http://www.tvhe.co.nz/?p=4398#comment-21709 @Matt Nolan
“This is still protectionism in the same vein. It is exactly like saying that if other countries are subsidising agricultural exports (which many were in the 80s) we should keep doing it.

I don’t disagree that the transition in the 80s may have been too quick, and perhaps a bit too disorganised.

BUT, the argument to keeping agriculture out of the ETS is exactly the same as the argument for keeping agricultural subsidises during the 80s – if NZ was so willing to get rid of the subsidises then why aren’t we now? There seems to be a framing issue here.”

Agreed it is protectionism. but maybe our view of transition has changed since the 80’s and a longer transition is now what is desired by society.

]]>
By: Tussock http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21707 Tue, 27 Oct 2009 00:58:48 +0000 http://www.tvhe.co.nz/?p=4398#comment-21707 The ETS subsidy to NZ agriculture has only been roughly calculated, but the numbers floating around are on the Muldoon era scale.

If these can be substantiated, then the protectionist backlash from Europe and the US will not be far away.

Government policy has been spineless and shortsighted on this issue. Not only are farmers getting taxpayer dollars to cover their Kyoto costs, but other big polluters are as well.

The contrast to US and EU farming is obvious. NZ has more dairy cattle than people, and about 10 sheep per head of population. The US has about 300m people and only 9m dairy cows.

]]>
By: dwippy http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21700 Sun, 25 Oct 2009 23:37:53 +0000 http://www.tvhe.co.nz/?p=4398#comment-21700 Probably the same reason we do here in Indiana USA. At some point long ago grain was too cheap so the farmers started getting a little extra. Then came the death of the small farmer so we just keep giving money to rich farming companies. It’s dumb but that’s how we do it.

]]>
By: Tim http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21691 Thu, 22 Oct 2009 22:46:05 +0000 http://www.tvhe.co.nz/?p=4398#comment-21691 Let’s not forget the ongoing environmental subsidies we provide to agriculture in the form of polluted waterways, depleted aquifers, deforested bush, etc, which don’t directly come out of the taxpayers’ hip pocket but are nonetheless paid for indirectly by all of us and by future generations, in the form of lost environmental amenity, health problems, reduced tourism dollars, etc…

I’d love to see someone carefully work out the numbers on what the direct subsidies via ETS exemption will cost NZ taxpayers, per job saved, akin to the studies of the “voluntary export restraints” for Japanese automobile exporters into the USA in the 1980’s… the numbers were huge. They might change the political game here. C’mon, Greens.

Since our dairy producers are highly “efficient” (the quotation marks allude to the environmental subsidies mentioned above), I suspect the number of jobs lost from full unsubsidised inclusion of agriculture in the ETS would be minimal. It would merely reduce farmer incomes from astronomical to planetary; I can’t see them all upping and leaving the farm tomorrow (except on a quick tractor run to Wellington).

]]>
By: Matt Nolan http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21685 Thu, 22 Oct 2009 01:44:44 +0000 http://www.tvhe.co.nz/?p=4398#comment-21685 @CPW

I never actually said that a subsidy was bad – although I suspect that is the way I would come down. My whole post was just saying that excluding agriculture from the ETS IS an effective subsidy.

I find it weird that some of the same people saying we shouldn’t have (explict) subsidies are also saying we should exclude agriculture from the ETS – there appears to be some sort of disjoint here.

]]>
By: CPW http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21684 Thu, 22 Oct 2009 01:37:41 +0000 http://www.tvhe.co.nz/?p=4398#comment-21684 You’re just assuming a “subsidy” is bad, Matt. Maybe agricultural output is so elastic that the optimal tax is zero. A flat carbon tax isn’t neccessarily the most efficient.

]]>
By: Matt Nolan http://www.tvhe.co.nz/2009/10/22/why-do-we-want-to-subsidise-agriculture-again/#comment-21683 Thu, 22 Oct 2009 00:39:36 +0000 http://www.tvhe.co.nz/?p=4398#comment-21683 “Its the same as having a transitional assistance of credits to emissions intensive trade exposed industries. If we didn’t subsidise their carbon obligations those industries could leave NZ and set up elsewhere”

This is still protectionism in the same vein. It is exactly like saying that if other countries are subsidising agricultural exports (which many were in the 80s) we should keep doing it.

I don’t disagree that the transition in the 80s may have been too quick, and perhaps a bit too disorganised.

BUT, the argument to keeping agriculture out of the ETS is exactly the same as the argument for keeping agricultural subsidises during the 80s – if NZ was so willing to get rid of the subsidises then why aren’t we now? There seems to be a framing issue here.

]]>