Climate change theory ca. 1887

Lawrence Solomon
National Post
June 24, 2002

In the last half of the 19th century, conventional wisdom in North America held that the climate in the Prairies – the vast lands that comprise much of the continent – was changing. In the United States and Canada, tens of governments, thousands of businesses and hundreds of thousands of individuals spent fortunes in line with this wisdom – the only time in human history that great sums were spent in anticipation of climate change.

The conventional wisdom was wrong. The fortunes were lost. Even worse, it took us down a path that led to North America’s greatest environmental disaster of the 20th century, and to staggering social costs that still bedevil us today.

Before the climate change theories came into vogue more than a century ago, settlements had stopped at the Prairie’s edge. Everyone knew that the arid lands – dubbed the Great American Desert – could not be farmed. But for several years, above-average rainfall blessed large parts of the Prairies, fostering wishful theories that allowed people to think that the climate had changed, and with it the rules of agriculture. The most popular climate change theory held that “rain follows the plow,” as if areas received rain because they were farmed, and not the other way around. Under this belief, which many scientists soundly endorsed, plowing exposed the soil’s moisture to the sky. “It is the great increase in the absorptive power of the soil, wrought by cultivation, that has caused, and continues to cause an increasing rainfall in the State,” explained University of Nebraska scientist Samuel Aughey. With the soil broken, rain is absorbed “like a huge sponge.” Evaporation from the soil then increases rainfall.

Others theorized that the new transcontinental trains were stirring the atmosphere and changing the flow of moisture, letting rains fall in the Prairies that otherwise would have travelled further east. The staid Army and Navy Journal attributed the rains to the railroad having altered the atmosphere’s electrical condition. In accepting yet another climate change theory, The Nation stated in 1887 that the entire Prairies “will within a few years enjoy a rainfall sufficient to admit of raising crops without any considerable degree of artificial irrigation.”

The wishful theories suited the politics of the day. Governments on both sides of the border were determined to encourage settlements on the Prairies, as were the railroads and developers eager to cash in on these government policies. It would take decades before the mad theories were put to rest, partly because scientists who dissented from the conventional wisdom were finally heard, mostly because the Prairies reverted to their historic, arid state. The U.S. Department of Agriculture’s 1896 Yearbook of Agriculture soberly concluded that “farmers have deluded themselves with the belief that with the breaking of soil . . . and bringing civilization, the climate was becoming more favorable to their operations.” The U.S. Geological Survey found that “fruitless and demoralizing movements of population” into the Prairies were occurring on the mistaken belief that “a radical change of climate” was taking place.

By then, much of the Prairies was overpopulated, creating vested interests to maintain farmers on land that could not safely sustain them. In his Report on the Arid Lands of North America, John Wesley Powell, perhaps the most prominent scientist of his day, recommended policies that would have slashed the farm population to one-sixteenth that planned, to avoid overpopulation.

He was ignored. Other theories that justified farming the desert arose, the theories spread like wildfire through government and farm lobby organizations, and settlers kept coming in droves. At the turn of the century, Stephen Leacock wrote in his history of Canada, two million people left Europe for the New World, the Prairies the destination for many of them.

The land could stand the strain for only so long. Residents of the northern Prairies would pay the consequences in a severe drought that hit between 1917 and 1921. Many farms failed then, but the worst was yet to come. The settlement of the Prairies soon produced the Dust Bowl, an unprecedented environmental disaster. With the native grasses plowed under for crop cultivation, and with intensive cultivation reducing the size of soil particles, the soil became dust when drought and high temperatures lowered the soil’s moisture. Winds then stripped areas of Saskatchewan and Alberta entirely of topsoil.

The first of the great dust storms swept across the northern plains in 1933. A May, 1934, dust storm that started in Montana carried some 350 million tons of soil toward the East Coast. Others were equally severe. The storms lasted until 1940.

The Prairie weather hadn’t changed, after all. But the Prairies have. Still overpopulated, and potent politically, if not economically, Prairie residents remain dependent on government payments for their sustenance, and delude themselves into thinking of droughts, rather than rain, as the exceptions. In 1690, the first European explorer in the Canadian Prairies, Henry Kelsey of the Hudson’s Bay Company, called the Prairies “barren ground.” So it was and so it will remain, as long as Prairie policies continue to be based on fictions.

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Second harvest

National Post
June 17, 2002

Letters to the Editor

Re: Record Harvest of Profits All Came From Subsidies, by Lawrence Solomon, June 13.

It seems inconceivable that farming in Canada generates barely enough income to cover the subsidies it receives from federal and provincial governments. Of course, if you got your news from the CBC, that sobering fact would never be mentioned. Instead, you would see Peter Mansbridge announcing “trouble down on the farm” and showing hapless farmers surveying their stunted crops.

I propose a sunset law for farmers. Each farmer, and each piece of land, would be eligible for a subsidy three times. The third subsidy would have to be used for wrapping up the operation and retraining in another field. Three strikes and you’re out.

As the army officer exclaimed after watching British soldiers blow up a bridge that British POWs had just built in the film Bridge Across The River Kwai – “Madness!”

Larry Lloyd, Sooke, B.C.

Read Larry Solomon’s article, “Record Harvest of Profits All Came From Subsidies.” 


Lawrence Solomon’s theories on what should be done about our cities mirror what I’ve been saying for some time, especially his recommendation about what to do with the provinces (Advice to Cities: Take Control of Your Province, June 7).

Cities, which provide all the services that are most important to people and have the most immediate effect on their daily lives, are by far the most important of all levels of government. How ironic that they have virtually no power.

The only other really important level of government is federal, since it provides the big overall stuff like defence and foreign relations.

The provinces, set up for a rural economy, have become like all those bloated layers of middle management that were swept away through the 1990s – and they should suffer the same fate.

Imagine what Ontario’s cities could do with the vast amounts of money that are wasted on our provincial bureaucracy.

The only provincial governments that still make any sense are those in the north, where populations are primarily rural, and make their living from the land.

What this highlights, of course, is the need for true democratic representation, and an end to the rural bias in representation. How do we make this a political issue, and what needs to be done to correct this endless gerrymandering?

Thank you for an excellent article. I hope a few other people are listening.

Michael Visser, Toronto

Read Larry Solomon’s article, “Advice to Cities: Take Control of Your Province.”

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Farm subsidies need more debate

Farm subsidies need more debate
Vancouver Sun
June 15, 2002

In their latest research study on agricultural subsidies in Canada, Lawrence Solomon and Carrie Elliot report that in the past 10 years no province operated a profitable farm economy.

This comes on the heels of reports that suggest the federal government is about to announce a $5.2-billion increase in the level of farm subsidies. Even though the announcement of new billion-dollar agricultural subsidies has become an almost annual event, the issue doesn’t get debated on talk radio or merit a single letter to the editor.

Last year was a record year for the agricultural industry in Canada and yet the total profit of $3.75 billion was just under the amount of direct government subsidies. In other words, as Solomon concluded, “all we harvest are subsidies.”

According to Agriculture Canada’s Data Book, for every dollar of profit over the past 10 years that a farmer made, on average Canadians subsidized it to the tune of $3.53, and that doesn’t include subsidization through lower power rates and property taxes.

What we as taxpayers don’t know about the billions spent on agricultural subsidies seems endless. Solomon and Elliot go a long way to bring us up to speed with their research published by the Urban Renaissance Institute.

Contrary to what you might hear, the woes of farmers in Saskatchewan, for example, are not simply the result of higher U.S. and European subsidies. Ten years ago, Saskatchewan farmers received a higher level of subsidy than their counterparts in the U.S. and Europe and yet at no point did the Saskatchewan farm economy make a profit.

We’re subsidizing farms on the Prairies that are a regular bailout waiting to happen because they are set up in areas that regularly experience drought. What’s worse is that the subsidies have encouraged farmers to cultivate even more land that can’t support an economic operation.

We can also forget about the myth that these subsidies are there to help the small family farm like the one in the old Lassie movies. As Solomon points out, “the subsidies support large-scale, mechanized agriculture, and only encourage the takeover of small farms by the large ones.”

The irony is that for the most part the small farms could make a go of it but are squeezed out by the large corporate farms receiving the subsidies.

The subsidies are not distributed equally to all agricultural sectors. B.C. has the best example of a well-diversified, consumer-driven industry in which many successful operations producing a variety of products are not subsidized. In fact, B.C. is the least subsidized province in the country with $1.81 in subsidies for every dollar in profit.

The bulk of direct subsidies go primarily to help out low-value commodities like wheat, which are then exported to other markets. In other words, the lower prices that are produced by subsidization benefit consumers in other countries. In Saskatchewan’s case, American consumers are the biggest beneficiaries of the low prices afforded by Canadian taxpayers.

The issue of how best to help our farmers requires far more public debate. The familiar policy route of more subsidies to otherwise uneconomical operations will not rescue them and continues to hurt us as taxpayers and consumers.

The problem is that no federal politician, fearing the intense fall-out, would dare tackle the issue.

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Record harvest of profits all came from subsidies

Lawrence Solomon
National Post
June 13, 2002

Last year was a bumper year for farmers, Statistics Canada reported recently: “Farmers’ net cash income rose 29.8% from 2000, as both cash receipts and operating expenses hit record highs.” Agriculture Canada was just as upbeat: “Agricultural Exports Reach All-time High,” it announced. Said federal Agriculture Minister Lyle Vanclief: “It looks like 2001 will be a year for the record books.”

Farmers did do well for themselves. Whether the record they set does Canada proud is another matter.

Before expenses, Canada’s farmers pulled down approximately $36-billion in revenue from the sale of their crops and livestock, and the receipt of direct government subsidies. After subtracting their expenses, they were left with the handsome sum of $3.75-billion to put in the bank. The direct government subsidies? They amounted to $3.752-billion. Subtract those subsidies and Canada’s farmers contributed not a penny in profits to the Canadian economy. All they harvested were subsidies. It gets worse.

Farmers not only received direct payments from governments, they also received inflated payments from consumers for staples, such as the artificially high prices that governments forced Canadians to pay for our milk and cheese. And farmers also benefitted from payments that the government made to support farming, such as trade promotion activities.

All told, according to Agriculture Canada’s Data Book, Canada provided close to $5-billion in farm subsidies. It was a record year, all right. In Nova Scotia, for every dollar of profit that a farmer made, society kicked in $3.46. In Quebec, we provided $5.76. In Alberta, $16.76. It was also a record decade for farmers. For every dollar of profit, Canadians provided $3.53. Not one province operated a profitable farm economy over the last 10 years.

When faced with criticism over the subsidies that they receive, farm lobby groups claim that the subsidies help consumers by lowering the price of food. The lobbies don’t explain that the consumers who benefit don’t live in Canada – we’re the ones who get to pay the inflated prices. The consumers who do benefit from Canadian subsidies live chiefly in rich countries whose citizens don’t need Canadian help to pay their grocery bills.

Take Saskatchewan, whose farmers received more than $1-billion last year in direct government payments, the most of any province. Little that Saskatchewan produces is meant for the local economy. Americans are Saskatchewan’s biggest customers by far. Next come the Japanese, then the Europeans. The more we sell to foreigners, the more we lose. In a good year, Saskatchewan exports $4-billion in agricultural products at a loss, in a bad year, $5.5-billion.

These days, Saskatchewan farmers blame high U.S. and European subsidies for their trouble. But several years ago, American and European subsidies were at their lowest levels in recent times. A decade ago, Canadian farmers received greater subsidies than either American or European farmers. At no point did the Saskatchewan farm economy turn a profit.

Because the federal government knows that most Prairie grain farmers have no prospects of standing on their own two feet, regardless of the level of U.S. subsidies, our federal government this week agreed to bend to their demand for more handouts. When we provide them, Americans and other rich-country consumers will get more of our taxpayer-provided farm commodities, and Third World farmers – who legitimately complain that our subsidies undermine their ability to earn a decent living – will continue to be put out of business.

There is a better way. Instead of using our farm subsidies to weaken the economy at home and in poor countries, we could use the existing subsidies to generously buy out Prairie farmers and others willing to sell their farming operations. The compensation packages could average in excess of $1-million per family – more than enough to give young farmers an opportunity to start a business in the real economy, or to provide a comfortable nest egg for those who wish to retire – and taxpayers would still be ahead.

The unproductive farms tend to produce for the export market, and they disproportionately lie in the semi-arid Prairies, which have historically received too little rainfall to support farming. After these farms are bought out, and after we removed subsidies from the remaining farms – those able to make an honest living off the land – Canada would be left with numerous small operations, mostly in the farm belts around cities. These farms, close to markets and producing high-value fruits, vegetables and other perishables, are largely immune from foreign competition and viable without subsidies. In fact, these small farmers already turn down the government’s very largest subsidy, heavily subsidized crop insurance, because they can self-insure more economically by diversifying their crops. The farms that overwhelmingly latch on to subsidized crop insurance are the large mechanized farms producing low-value commodities – without subsidized crop insurance, they would go out of business.

More subsidies won’t save Canadian agriculture, they will only harm taxpayers and consumers. Agriculture Minister Vanclief understands this: “The high level of subsidies depresses prices and effectively shuts out producers from developing nations,” he told the United Nations World Food Summit earlier this week. Mr. Vanclief was complaining about U.S. subsidies. His complaint is no less valid in Canada.

FARM SUBSIDIES PER DOLLAR OF FARM PROFIT (1992 – 2001):

Nfld: Transfers from taxes, Transfers from consumers = 4.77

PEI: Transfers from taxes, Transfers from consumers = 2.38

NS: Transfers from taxes, Transfers from consumers = 3.02

NB: Transfers from taxes, Transfers from consumers = 4.47

Que: Transfers from taxes, Transfers from consumers = 4.60

Ont: Transfers from taxes, Transfers from consumers = 6.10

Man: Transfers from taxes, Transfers from consumers = 2.83

Sask: Transfers from taxes, Transfers from consumers = 3.41

Alta: Transfers from taxes, Transfers from consumers = 2.66

BC: Transfers from taxes, Transfers from consumers = 1.81

Canada: Transfers from taxes, Transfers from consumers = 3.53

Source: Urban Renaissance Institute

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Agricultural Subsidies in Canada: 1992-2001, Data Tables

June 13, 2002

1992-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 6403 50254 35097 55487 543191 457186 269348 419412 464267 159422 2460065
Net payments to producers 4230 28042 14231 25668 565908 648361 272707 803645 745847 52243 3160882
Adjusted total net income 2173 22212 20866 29819 -22717 -191175 -3359 -384233 -281580 107179 -700817
Government transfers 32277 78510 105644 83046 1402705 1504251 797971 2211919 1550160 309149 8075632
Farm subsidy ratio 14.85 3.53 5.06 2.79 * * * * * 2.88 *
1993-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 4180 8457 24682 31682 674556 576364 214095 961094 977184 156929 3629222
Net payments to producers 3437 9176 7855 12978 456338 429208 285079 598801 425309 30275 2258456
Adjusted total net income 743 -719 16827 18704 218218 147156 -70984 362293 551875 126654 1370766
Government transfers 34600 66063 108061 85032 1306059 1440049 621221 1561798 1292229 306440 6821552
Farm subsidy ratio 46.57 * 6.42 4.55 5.99 9.79 * 4.31 2.34 2.42 4.98
1994-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 3283 55919 27867 26955 797619 476104 359235 799091 683871 132722 3362666
Net payments to producers 4614 11241 6577 3288 509475 171197 202286 149956 311124 21453 1391000
Adjusted total net income -1331 44678 21290 23667 288144 304907 156949 649135 372747 111269 1971666
Government transfers 30907 61348 96076 72296 1215091 1210054 519590 1181150 1060514 296341 5743367
Farm subsidy ratio * 1.37 4.51 3.05 4.22 3.97 3.31 1.82 2.85 2.66 2.91
1995-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 2743 85926 29286 22201 652226 438453 173728 958571 1029356 104190 3496678
Net payments to producers 3063 24361 6217 7726 460771 191396 26361 118576 91144 20770 950385
Adjusted total net income -320 61565 23069 14475 191455 247057 147367 839995 938212 83420 2546293
Government transfers 28552 45491 83833 63161 1146052 1052996 439069 1076454 830905 256064 5022579
Farm subsidy ratio * 0.74 3.63 4.36 5.99 4.26 2.98 1.28 0.89 3.07 1.97
1996-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 9200 25921 53625 37962 864149 608899 553468 1313144 914327 111794 4492488
Net Payments to Producers 6763 11242 12262 14392 356975 225991 -3838 237014 73689 28291 962781
Adjusted total net income 2437 14679 41363 23570 507174 382908 557306 1076130 840638 83503 3529707
Government transfers 25045 49535 72999 58295 1136922 902704 458740 1111794 744439 233238 4793711
Farm subsidy ratio 10.28 3.37 1.76 2.47 2.24 2.36 0.82 1.03 0.89 2.79 1.36
1997-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 12799 9818 33213 7460 727318 484924 291736 184367 569737 146127 2467500
Net payments to producers 5997 7143 9135 9399 224388 216237 96733 162536 134448 31668 897683
Adjusted total net income 6802 2675 24078 -1939 502930 268687 195003 21831 435289 114459 1569817
Government transfers 23041 38020 63801 54094 882245 835519 326421 783512 780341 208505 3995503
Farm subsidy ratio 3.39 14.21 2.65 * 1.75 3.11 1.67 35.89 1.79 1.82 2.55
1998-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 12756 18647 44101 12392 778216 482374 295240 543425 446706 228116 2861986
Net payments to producers 360 10467 15554 5222 526308 159882 46591 162910 150169 31651 1109114
Adjusted total net income 12396 8180 28547 7170 251908 322492 248649 380515 296537 196465 1752872
Government transfers 21951 34579 61251 49152 907033 842035 258526 438363 582511 221856 3417256
Farm subsidy ratio 1.77 4.23 2.15 6.86 3.60 2.61 1.04 1.15 1.96 1.13 1.95
1999-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 19520 47291 44843 44947 799610 429047 227548 652009 402708 234111 2901635
Net payments to producers 350 18696 14528 5851 630008 330047 216017 475871 219080 40812 1951260
Adjusted total net income 19170 28595 30315 39096 169602 99000 11531 176138 183628 193299 950375
Government transfers 15835 34981 62125 40860 1012349 825217 230322 471669 579957 190444 3463760
Farm subsidy ratio 0.83 1.22 2.05 1.05 5.97 8.34 19.97 2.68 3.16 0.99 3.64
2000-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 6126 27233 47026 36723 664400 437645 478120 471161 408100 267353 2843887
Net payments to producers 368 16954 11969 5820 560190 422826 287093 775667 707568 38544 2826999
Adjusted total net income 5758 10279 35057 30903 104210 14819 191027 -304506 -299468 228809 16888
Government transfers 15839 48917 74817 55455 1164196 1115599 410139 773967 658041 232744 4549718
Farm subsidy ratio 2.75 4.76 2.13 1.79 11.17 75.28 2.15 * * 1.02 269.41
2001-RATIO OF FARM SUBSIDIES TO FARM INCOME
Nfld PEI NS NB QUE ONT MAN SASK ALTA BC CANADA
Total net income 12531 -55691 35303 36500 826234 777428 659568 265328 867068 325344 3749607
Net payments to producers 712 58542 17531 6412 607992 777175 382147 1022437 819427 59863 3752238
Adjusted total net income 11819 -114233 17772 30088 218242 253 277421 -757109 47641 265481 -2631
Government transfers 16093 52351 61417 50421 1257824 1145667 409442 836917 798434 230961 4859532
Farm subsidy ratio 1.36 * 3.46 1.67 5.76 4528.33 1.47 * 16.76 0.87 *

* : indicates negative ratio
Adjusted total net income: Total net income – Net payments to producers

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