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I do agree with you that farm subsidies should go, but lobbyist has a lot to do with supply and demand. Farmers will pay for lobbyists to buy special treatment (via campaign contribution, ads, etc) and that is a form of advertisement that influence demand and supply in the market place (as in voters opinion as well as politicians'). You are kidding yourself if you think this has nothing to do with the market. If it is central planning, government would be forcing farmer to grow something due to water usage, instead of farmer asking government to reduce prices of water.
If you believe that the purchasing of politicians to enact policies in favor of particular people is part of a free market, then I really don't know what else to say on this matter.
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Rice is cheap but it uses a lot of water, but I'm sure no one want a supermarket that sells only strawberries and no rice / wheat / corn, so why do you use this as a yard stick to measure what is "efficient"?
Maybe grow it in areas / countries with more water? Do subsidies on water increase or decrease incentives to use water more responsibly?
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what would market economy do to magically solve the problem of dry spell
Prices would go up if demand is the same.
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how market economy would determine how much water to flow into the ocean for free vs selling to the farmers.
I assume you are talking about rivers?
I do agree with you that farm subsidies should go, but lobbyist has a lot to do with supply and demand. Farmers will pay for lobbyists to buy special treatment (via campaign contribution, ads, etc) and that is a form of advertisement that influence demand and supply in the market place (as in voters opinion as well as politicians'). You are kidding yourself if you think this has nothing to do with the market. If it is central planning, government would be forcing farmer to grow something due to water usage, instead of farmer asking government to reduce prices of water.
If you believe that the purchasing of politicians to enact policies in favor of particular people is part of a free market, then I really don't know what else to say on this matter.

Quote:
Rice is cheap but it uses a lot of water, but I'm sure no one want a supermarket that sells only strawberries and no rice / wheat / corn, so why do you use this as a yard stick to measure what is "efficient"?
Maybe grow it in areas / countries with more water? Do subsidies on water increase or decrease incentives to use water more responsibly?
Quote:
what would market economy do to magically solve the problem of dry spell
Prices would go up if demand is the same.
Quote:
how market economy would determine how much water to flow into the ocean for free vs selling to the farmers.
I assume you are talking about rivers?