Why is Everyone Hating on
FARM SUBSIDIES?
FARM BILL
Passed every 5-6 years
within Congress
Began with Agricultural
Adjustment Act of 1933
during the New Deal
Most recently: Food,
Conservation, and
Energy Act of 2008
HISTORY
New Deal policy: pay
farmers not use entire
farm, to keep supply low,
and prices reasonable
Nixon’s Secretary of
Agriculture, Earl Butz:
“Get big or get out.”
Subsidize farmers who
plant more.
THE PROBLEM THE SOLUTION
Farm subsidies are inherently
Eliminate farm
bad. subsidies altogether
THE REAL PROBLEM
Majority of subsidies
based on two criteria:
quantity farmed and
market price.
Individual farmers have
no influence on market
price.
Only choice to increase
subsidies is to increase
quantity.
WHAT GETS SUBSIDIZED?
93% of subsidies go to 5
crops: corn, soybeans,
rice, cotton, and wheat.
6 of 10 American
farmers receive no
federal money
10% of farmers receive
72% of federal subsidies
ORGANICS LOCAL FARMS
Only $5 million of $250 billion Small farms often overlooked
designated specifically for
organic in 2002. by subsidy programs
Money spent by Agricultural Some programs require eight
Research Service years to apply for support
disproportionately small for
organic farms. Some subsidies are directed
Crop insurance programs specifically for exports
discriminate against organics
because there is not enough
research to determine fair
premiums and
reimbursements.
HOW RESPONSIBILITY IS REWARDED
IS THERE HOPE?
Government can’t just base subsidies on quantity:
the taxpayers’ money should be spent to support
companies helping the taxpayers’.
“Big agriculture” lobbies stand in the way. Refuse
to let policies change.
Agriculture accounts for $50 billion trade surplus:
will it be put at risk?
2008 bill has made improvements, especially for
conservation policies, but on a small scale: still
continues “more is more” attitude of earlier bills.