Different risk management programs have different caps on subsidy money based on farm size.
Crop insurance seems to be exception with no limit other than acres.
Governments and taxpayers might want to consider whether they want to encourage and support fewer larger operations or a multitude of smaller ones.
Think U.S. also has limits on farm bill payments to favour smaller operations.
Moral hazard in both countries for lawyers and accountants to find ways around limits just as there is with graduated tax levels that favour smaller operations.
No easy answer on how far to go to favour efficiency of larger operations that also may have greater risk.
Crop insurance seems to be exception with no limit other than acres.
Governments and taxpayers might want to consider whether they want to encourage and support fewer larger operations or a multitude of smaller ones.
Think U.S. also has limits on farm bill payments to favour smaller operations.
Moral hazard in both countries for lawyers and accountants to find ways around limits just as there is with graduated tax levels that favour smaller operations.
No easy answer on how far to go to favour efficiency of larger operations that also may have greater risk.
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