GOVERNMENT GLUT: Subsidies Encourage Maine Farmers to Keep Growing Too Many Blueberries.

During a multi-year wild blueberry glut, government agencies have been using subsidies and grants to encourage Maine farmers to keep growing the crop. Too bad no one seems to want them. Maine has a glut of the berries, and now the governor of Maine hopes to help sell them off by spending $2.5 million on agricultural marketing.
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A combination of falling prices, increased competition, and advances in production technology should have reduced the number of blueberry farmers. Yet, government intervention has caused a multi-year surplus. According to Bott, berry prices have plummeted: 100 million pounds sold for $1 per pound in 2011 but only 25-27 cents per pound in 2016.

Despite these low prices, Canada and Maine churned out a bumper crop of blueberries in 2016: 400 million pounds, almost double the typical 250 million pounds. Bott explained that much of the wild blueberry surplus comes from improved production technology, pollination, good fertilizer, and favorable weather.

Last year’s berry surplus prompted the U.S. Department of Agriculture (USDA) to spend $13 million buying up some of the berries. A $50,000 grant from the Department of Agriculture, Conservation and Forestry helped fund marketing to public schools—the berries will now be served in 19 states.

The solution to a failed government program is always more government spending, in this followed by hectoring school kids into literally swallowing the results.