Ag Policy Blog
Howard Buffett on Farm Subsidies and Stronger Agricultural Systems
Howard Buffett was taking questions at the Borlaug Dialogue of the World Food Prize events on Thursday when he was asked his views about the role farm subsidies should play in helping develop agriculture in African countries such as Ghana.
His answer reflected some of the issues that will be debated in the coming weeks about the role of U.S. commodity programs and policies such as conservation compliance.
Perhaps, most interesting, Buffett started off noting that farm programs are critical for any country trying to ensure food security.
"There's not a country in the world that I'm aware of that has a powerful agricultural system that did not use subsidies to get there," Buffett said. "So, I don't think it's whether you have subsidies. I think it's, what are they, how they are used and are they equitable in the transfer or distribution?"
In the U.S., the question becomes, what are the consequences, or what behavior do they drive? "I think we're debating vigorously how we go from where we have been and where do we need to be on that issue." Also, is it equitable?
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Buffett said he compares agricultural production to the Department of Defense. "If you can't feed your country, then you are vulnerable to lots of things."
A successful agricultural economy is one of the elements to a successful country, he said.
"I don't think agriculture often gets the respect it should have," he said. "To build that system, I absolutely think that subsidies, in most cases, are going to be part of that. I think it gets into the details of how they are divided and how they are used."
Subsidies give farmers a fall-back position, particularly when prices collapse or the crop fails.
"I think that's an important thing, particularly for a country that's trying to develop agriculture -- to keep farmers in business and you deal with the disasters the come along that are always out there," he said. "So part of that is disaster relief."
A failure in the U.S., Buffett said, is not building a subsidy system around conservation agriculture. Buffett pointed to Brazil as a "shining star" for building a system based on conservation. Buffett
"The greatest asset a farmer has is soil," he said. "And soil is not sexy. So, it's dirt and gets treated like dirt. We have to change how people feel about that. You can talk about all the yields in the world, but you're not growing it unless you have the lands to produce it."
Thus, subsidies have to create behavior that protects natural resources such as water and soil.
"We've not done as good a job on that in this country as we can do," Buffett said. "That can be done in Africa and needs to be done in Africa."
Africa has some of the most degraded or weathered soils in the world, he said, and those lands need to be protected to prevent further deterioration.
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