Why are supply management programs such an anathema to so many people

Why are supply management programs such an anathema to so many people? Part of the reason can be traced to events that took place 34 years ago. Between the 1981 crop year and the 1982 crop year, corn ending stocks increased 1 billion bushels (12.2 percent of production) to 3.5 billion bushels with grain reserves growing to 3.0 billion bushels and prices falling to the loan rate of $2.55 per bushel.“On January 11, 1983, President Reagan announced that the US Department of Agriculture would implement a payment-in-kind (PIK) program to help reduce government grain surpluses and to improve farm income”  Secretary of Agriculture John Block explained, “PIK is basically simple…. Farmers who take out of production additional acres over what they agree to take out under the current program will receive as payment a certain amount of the commodity they would have grown on these acres. The commodity is theirs to do with as they wish. Commodities for the PIK program will come from farmer-owned reserve, regular loan or CCC-owned stocks.“We have a three-fold objective with PIK…. Reduce production, reduce surplus stock holdings, and avoid increased budget outlays that would otherwise be necessary under price support programs.”Farmers responded positively to the program. Production problems during 1983 resulted in farmers taking more acres out of production than anticipated. In the end, 32.2 million corn acres were taken out of production and the harvest fell by nearly 50 percent to 4.2 billion bushels.With reduced acreage, purchases of input supplies fell drastically, fewer machinery repairs were needed, and reduced production resulted in less grain going through the marketing channels. The impact on Main Street and the agribusiness sector was immediate as was the response.At that point, the agribusiness sector began to pay more attention to agricultural policy and the design of commodity programs. Blame for reduced sales was directed toward supply management programs which used acreage reduction programs to keep from accumulating excessive stocks.