Tuesday, March 8, 2011

This is interesting

Ezra Klein:
Yesterday afternoon, I got an e-mail from a “usda.gov” address. “Secretary Vilsack read your blog post ‘Why we still need cities’ over the weekend, and he has some thoughts and reflections, particularly about the importance of rural America,” it said. A call was set for a little later in the day. I think it’s safe to say Vilsack didn’t like the post. A lightly edited transcript of our discussion about rural America, subsidies and values follows.
Ezra Klein: Let’s talk about the post.
Tom Vilsack: I took it as a slam on rural America. Rural America is a unique and interesting place that I don’t think a lot of folks fully appreciate and understand. They don’t understand that that while it represents 16 percent of America’s population, 44 percent of the military comes from rural America. It’s the source of our food, fiber and feed, and 88 percent of our renewable water resources. One of every 12 jobs in the American economy is connected in some way to what happens in rural America. It’s one of the few parts of our economy that still has a trade surplus. And sometimes people don’t realize that 90 percent of the persistent poverty counties are located in rural America.
EK: Let me stop you there for a moment. Are 90 percent of the people in persistent poverty in rural America? Or just 90 percent of the counties?
TV: Well, I’m sure that more people live in cities who are below the poverty level. In terms of abject poverty and significant poverty, there’s a lot of it in rural America.
The other thing is that people don’t understand is how difficult farming is. There are really three different kinds of farmers. Of the 2.1 million people who counted as farmers, about 1.3 million of them live in a farmstead in rural America. They don’t really make any money from their operation. Then there are 600,000 people who, if you ask them what they do for a living, they’re farmers. They produce more than $10,000 but less than $250,000 in sales. Those folks are good people, they populate rural communities and support good schools and serve important functions. And those are the folks for whom I’m trying to figure out how to diversify income opportunities, help them spread out into renewable fuel sources. And then the balance of farmers, roughly 200,000 to 300,000, are commercial operations, and they do pretty well, particularly when commodity prices are high. But they have a tremendous amount of capital at risk. And they’re aging at a rapid rate, with 37 percent over 65. Who’s going to replace those folks?
There's a lot more.  It is well worth the read.  It is funny that the Secretary of Agriculture is defending subsidies to rural areas and saying that people in rural areas aren't doing well and feel underappreciated.  Meanwhile, people in rural areas feel like they are subsidizing poor folks in the cities, and want to cut government spending.  What seems surprising to me is that this is the post that the Ag Secretary was responding to.  It seems pretty innocuous, the only mention of rural areas being the nearly throwaway line of:
The overarching theme of Glaeser's book is that cities make us smarter, more productive and more innovative. To put it plainly, they make us richer. And the evidence in favor of this point is very, very strong. But it would of course be political suicide for President Obama to say that part of winning the future is ending the raft of subsidies we devote to sustaining rural living. And the U.S. Senate is literally set up to ensure that such a policy never becomes politically plausible. (emphasis mine)

Also, maybe someday an important person will read this blog and proceed to call me to bitch about something I wrote.

2 comments:

  1. Well, I guess I don't count as an important person. I guessing you are in the 600K of people who are farmers?

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  2. With the high prices and a good crop, we make it to the commercial farmer level. My livestock operations fall in with the 1.3 million people mentioned first.

    As for important people, the only regular commenter is very important.

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