who benefits
yearly cost to taxpayer
historical cost
% fed budget in comp arison to otehr direct pay
impast
on price stability
full employment
economic growth
potential impact beyond recipient 3 areas impact anyone else?
To ensure both an adequate food supply and that the profession of farming continues as a viable livelihood the federal government provides subsidies or as it has been called "a safety net" for American farmers. The main reason this was initiated in the 1930s was because of variations in the weather and the uncertainty of a decent yearly harvest. It was also the depression and the government was concerned about the nations food security. During the depression the government paid farmers not to plant crops in all of their fields to try and stop the glut of food which Americans could not afford to buy. Due to the surplus it was also not worth much. So what started out as a temporary measure to help farmers from losing the farm has become a permanent fixture costing Americans $195 billion over 10 years as of 2013. Although the argument from many is that this is still an attempt to save the family farm, most small farms receive little if any subsidies. Accordingly the 5 favorite crops earning subsidies are corn, soybeans, wheat, cotton and rice
These farm bills currently give direct payment to farmers at a set rate each year regardless of conditions. Counter-cyclical payments are sent out when market prices fall below a certain level in an attempt to keep things at equilibrium. Disaster payments are guaranteed farmers as is crop insurance.
So who benefits now from crop subsidies? Many people believe that the people who benefit the most now is really big agriculture. About 10% of farmers who receive subsidies pocket 75% of the subsidies. Herein lies the major criticism that the wealthiest farmers receive the majority of subsidies. Opponents of subsidies believe that wealthy agricultural business owners are paying off Republicans for their vote. This also answers the question of how this direct payment plan affects other areas of the economy. Lawmakers also added a "shallow loss" bill to the program at a time when there was not enough money for food stamps and when many Americans are hard hit by a contracting economy.
So while it is true that farm subsidies impact full employment of farmers, price stability of crops and help economic growth for agriculture, the money spent on the subsidies has a high opportunity cost for other needed measures and bills in the nation.
How does the $194 billion price tag for farm subsidies compare to other direct payments? The Department of Agriculture takes about a 20% slice of the direct payment pie while Health and Human services 38%, Justice 10% Department of the Interior 22% and Housing and Urban Development 10 %.
I would respectfully request that Congress consider overhauling the federal farm subsidies program.
The program was created at a time when the majority of Americans were directly related to agriculture during the depression era of the 1930's. It is not longer the depression and people are in greater need of training and retraining for education and vocation. Now small farmers see very little payout in subsidies it is only big agriculture which see the large portion of payouts. Our public school are in great need of infrastructure replacement and our highways need updating as well. It is incomprehensible that agriculture should receive 20% of the direct payments from the federal government when we have such an incredibly urgent list of other tasks to be attended to.
Congress, please consider a major revision to the farm subsidies bill when it crosses your desks again in about four years. There are many families and desperate children who pray that in your wisdom you will see the value in putting a larger percentage of the budget into education and training those left destitute from our 21st century recession.
