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Farm Bill Provides Subsidies to the Wealthy, Too
November 12, 2007 10:00 AM
by
findingDulcinea Staff
On Oct. 25, the Senate Committee on Agriculture, Nutrition & Forestry agree to allocate $280 billion for agriculture, nutrition programs and farming subsidies; but some commentators question whether the money is being distributed fairly.
30-Second Summary
The Farm Bill offers financial aid to farmers at a time when commodity prices for corn are rising, buoyed up by the booming ethanol industry.
But Time magazine presents another reason for probing how equitable U.S. farm subsidies are. It considers the possibility that the overproduction of subsidized crops will push down prices, making it harder for poor countries to compete on world markets.
This possibility was raised by Acting Agriculture Secretary Chuck Conner. As reported in The Washington Post, Conner suggested that Farm Bill assistance will prompt complaints from the World Trade Organization, which may take legal action to defend farmers in the developing world.
Other opponents of the bill argue that small farms receive too little in subsidies, as the richest 10 percent of farmers enjoy the lion’s share of the available aid.
Proponents of the bill hail Congress for providing more assistance to farmers when crops fail.
The Bill will come before Senate in mid-November.
But Time magazine presents another reason for probing how equitable U.S. farm subsidies are. It considers the possibility that the overproduction of subsidized crops will push down prices, making it harder for poor countries to compete on world markets.
This possibility was raised by Acting Agriculture Secretary Chuck Conner. As reported in The Washington Post, Conner suggested that Farm Bill assistance will prompt complaints from the World Trade Organization, which may take legal action to defend farmers in the developing world.
Other opponents of the bill argue that small farms receive too little in subsidies, as the richest 10 percent of farmers enjoy the lion’s share of the available aid.
Proponents of the bill hail Congress for providing more assistance to farmers when crops fail.
The Bill will come before Senate in mid-November.
Headline Links: The Farm Bill
On Oct. 25, the Senate Committee on Agriculture, Nutrition & Forestry passed a $280 billion bill for agriculture and nutrition programs, which includes subsidies for farmers. According to The Wall Street Journal, opponents of the bill believe it primarily supports wealthy farmers, while not doing enough for those who are struggling.
Source: The Wall Street Journal
The Senate Committee on Agriculture, Nutrition & Forestry Web-site offers the text of the Farm Bill, archived video on the Farm Bill markup proceedings, as well as the latest updates and information on the bill.
Source: Senate Committee on Agriculture, Nutrition & Forestry
Background: The bill’s beneficiaries
Earlier this summer, the chairman of the Senate Committee on Agriculture, Nutrition & Forestry, Sen. Tom Harkin (D-Iowa), expressed his hope that the current farm subsidy bill would be revamped to include more farmers. “We have to consider new ideas. We should not cling to a system that channels ever larger commodity payments to relatively few, with two-thirds of American farmers getting none at all,” stated Sen. Harkin in June.
Source: The New York Times
The president of the Environmental Working Group, Ken Cook, explained to National Public Radio that the majority of farm subsidies are given to farmers regardless of commodity prices. In addition, farmers can receive the payments whether or not they are actively growing crops. Cook asserts that a small percentage of farmers receive the majority of subsidies: “About 10 percent of the beneficiaries, very large and generally wealthy operations, get over 70 percent of the benefits, and so the payments are very concentrated … It’s important to remember that two-thirds of the farmers in this country are not in this program at all.”
Source: National Public Radio
Reactions: Acting Agriculture Secretary, North Platte Bulletin and Des Moines Register
The Acting Agriculture Secretary Chuck Conner believes that the high crop support rates included in the Farm Bill will lead to complaints from the World Trade Organization. Committee Chairman Tom Harkin concurs, "I think we're going to have a lot of WTO challenges on this. I agree with Chuck Conner on that."
Source: The Washington Post
According to the North Platte Bulletin, a Nebraskan publication, the Senate’s version of the Farm Bill includes far too few payment limits on subsidies for multimillion-dollar farms and not enough subsidies for smaller farms, which are the most common type in Nebraska.
Source: North Platte Bulletin
The Des Moines Register lauds the Farm Bill for providing more aid to farmers when crops fail.
Source: Des Moines Register
Opinion & Analysis: U.S. farm subsidies and world markets
Time magazine examines the Farm Bill passed by the House in July 2007 and considers how this type of financial aid reduces world cotton prices by encouraging overproduction.
Source: Time magazine
Reference Material: The farm bill beneficiaries
The United States Department of Agriculture provides a map showing the concentration of Farm Bill subsidy beneficiaries in Manhattan, New York.
Source: United States Department of Agriculture
The Environmental Working Group (EWG), a watchdog and think tank, breaks down the commodity subsidies according to the districts represented by the House Agriculture Committee for 2003–2005. Forty-two percent of the subsidies went to the 19 districts represented by the House Agriculture Committee members.
Source: Environmental Working Group
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