Central Planning.  The USDA.  Collectivization of Agriculture.  3 14 2024

When looking at what we know of as capitalism, it is very planned out.  The agriculture is all capitalistically owned, with larger farms and wage labour the rule.  The farm grows one crop, corn, for instance, rather than several crops for small scale consumption, or a small market.

In order to make it work the government has to pay subsidies, money paid  to the farmers to grow  (Or not to grow) a certain amount of corn, in our example.  This money is distributed based on the size of the farm,  the larger the farm, the more subsidies they are given.

This discourages small farmers, and collectivizes agriculture, resulting in a planned expenditure of labour and materials on several large farms rather than many small ones.  This resembles central planning, a socialist concept.  The farmers get paid to grow a set amount of food, and it is capped.

The logic is if the crops were grown without the cap on production, the market would get glutted, and they would have to do things like dump the milk, as it would be so cheap it would be unsaleable.

The latter happens sometimes, as it did in the last crisis, when the milk was dumped due to Covid.  The price of milk was capped at $2.19 a gallon, it was being dumped at this price.  The stores rarely sold it for less, it was discouraged.

This form of central planning is part of large scale agriculture, and is also financed by banks.  Financial capital is part of agriculture; farmers have to get loans to pay for equipment, and other capital expenditures. This further cements capitalism on the land, and makes growing food impossible on a small scale, as competition between the collective farm and the small farm squeezes out the small farmer, who are removed from the land  resulting in their joining the ranks of the urban proletariat.

What is left is large farms, and central planning.  The United States Department of Agriculture (USDA) is part of this process. The large companies like Monsanto also put the screws in small agriculture, by patenting the seeds, and requiring farmers to buy from them.  The USDA is subordinate to the larger farms and companies, its budget comes from the profits of these companies and large farms.

It seems to be “in” these days for capitalist economists to make fun of socialist central planning, like Ha -Joon Chang does in the book Economics, on p. 153- 154.  Chang should remember  that without central planning for agriculture, the market would surely be constantly glutted, and food wasted. I mean, what is the purpose of an organization like the USDA if it is not central planning?  Food safety inspections? Its 2024 budget is $384.35 billion dollars split between 22 sub components.  That’s a lot of food inspections!  The Farm Service Agency alone pays 1,262 thousands millions ($1.262 billion) in salaries alone.

If you want to see American socialism, Direct Government farm payments are forecast at $10.2 billion in 2024.  This is pure cash to farmers to grow as the USDA predicts the value of commodities to be, and how much can be grown to fit the needs of the market.  It goes to large farmers who collectively control the market for agricultural products.  This is central planning.

Socialist collectivisation and central planning of agriculture is pretty similar to what the Soviet Union tried to do.  It conquered Germany after only 28 years of operation.  It is effective on certain commodities, generally the more common needs of a population.  It may be more difficult for industrial products, rare motor parts, etc.  But it worked well for grain.

It would seem the US has a central planning strategy for capitalists, and the USDA, if nothing else, knows about it.  If you look at the money it is in capitalist owned fertilizer and pesticide companies, seed dealers (often overlapping like Monsanto), the large banks who bankroll the capital, and the state, it is done with scientific accuracy, central planning only not by the workers, by and for the bourgeoisie.

I would like to hear what Chang would say to this when poking fun at central planning.  Regardless of if there is another way to control agriculture,  central planning seems to already be here.  It is only that it is for capitalism not socialism.

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic

3 14 2024