RSS 2.0 FeedGovernment Can’t Tell Needy Farmers From The Rich…
by Brad Warbiany…so they pay them all!*
And despite the fact that the Farm subsidy programs are a completely flawed, poorly designed program, with members of Congress who would like nothing more than to send them to the dust bin, they’re not going anywhere:
However, as the Senate prepares to debate its farm bill next week, prospects for change again look dim. The House of Representatives has already passed a bill preserving most subsidies, but throwing soothing sops to opponents in the form of help for biofuels and conservation. On October 25th a Senate committee approved a draft that would leave subsidies more or less as they are for another five years.
According to a database compiled by the Environmental Working Group, a whopping $165 billion went on farm payments between 1995 and 2005. But 73% of that went to 10% of recipients. Half went to only eight states. American farmers, meanwhile, are hardly struggling. The Department of Agriculture projects that the average farm household’s income this year will be $87,000.
In 2005 a quarter of subsidies came in the form of “direct payments”, which go to landowners regardless of what they farm, how much they farm or if they farm at all. These payments, originally designed to wean farmers off subsidies, have stuck around, along with the subsidies they were meant to replace.
The Senate committee made a nod to reform by declaring those who make more than $750,000 a year ineligible for this largesse—but only as long as two-thirds of that income does not come from farming. The federal government, then, will continue to hand billions to profitable farmers and many others under the bill. An amendment from Richard Lugar, a Republican from Indiana, proposed slashing direct payments in order to finance other priorities such as food stamps. But it failed miserably in the committee, which is filled with the farm lobby’s friends.
Yet another government program that barely helps the people it intends to help [truly poor farmers] while further enriching the already-rich, the lobbyists, and protecting Congressmen from the perils of getting voted out of their cushy jobs.
And as usual, only two groups of people get screwed in the equation: the taxpayers and the consumers. The government takes our money and gives it to farmers who are already getting record prices for their crops, and then we’re paying those record prices when we buy the crops. Food prices have increased over 30% in the last year, yet our elected officials don’t have the balls to stand up to the lobbyists and actually do something to benefit the public for once.
It should be an indication that the system is flawed when Congressional approval ratings are regularly in the 20-30% range, and yet incumbents are re-elected at higher than a 95% rate.
* Regarding “paying them all”, that’s an oversimplification. The rich hire the best lobbyists, and thus it is by design that the rich farmers are getting such big payments. I’d call it “corporate welfare”, but a better term would be simple theft.
Yup. My crook is doing a great job. If only we could get rid of the all those other crooks, it’d be a good institution.
Comment by Jeff Molby — November 8, 2007 @ 4:24 pmI belive the average american farmer while receiving subsidies, and also record crop prices, has the innate innability to make 87000 a year. The crop prices may statistically show, as well as subsidy payments, that that maybe projected, but it does not take into account the rising cost of fuel, and the 2 year cycle for beef prices, or the 18 month cycle of hog prices. If you look at the statistics for the past 75 years, there are lows and highs for the price cycle of farm crops. As I write this, my neighbors, yes your average american dairy farmer with 80 head is receiving 20 dollars a hundred weight or roughly 20 cents for a gallon of milk. With 5000 gallon which means that they would receive approximately 436 dollars for a days worth of work, but when you factor in the cost of labor, electricity feed, land, vet bills, vaccinations, and not to mention the up to date milkers, that leaves very a very thin profit margin.
Comment by Elliot M. Ruiz — November 8, 2007 @ 9:53 pmThe average feedlot producer which recieves their calves in at 800 lbs and finishes at 1200 lbs in 100 days only receives 20 dollars a head for the work that they put into each steer, also a very thin profit margin. That final price is taking into account that they have to purchase the corn and other necessities to raise their beef. In 2005 68% of all US corn grown was used for animal feed. In 2006 due to the ethanol boom, has caused more corn to be grown but at the same time, there has not been enough supply to keep up with the demand that the ethanol boom has placed upon the market thereby driving up the price on the bushel of corn. This price must be paid by the beef producer, which in no way is subsidized for his beef end products.
Now I ask you, Could you make it on $20 dollars a head knowing that 1 acre of land will support 1.56 cows???
I am an agribusiness man from Platteville, Wisconsin, who is involved in world trade. I support the american famer everyday by selling their products overseas. I have helped many of my neighbors by getting them premiums, and helping them earn more then they would have throught heir local markets. I believe that it is possible for the local farmer to do more then earn the break even price, but knwoing that the USDA says 87000 dollars in profit for average farmer, and having seen it first hand and how difficult of a life is, I sincerely doubt that that kind of money can be acheived.