Farmsubsidies are not intended to reduce the cost of food significantly.
The most enduring political illusion is that farmsubsidies are necessary to maintain the small family farmer.
According to the subsidy watchdog Environmental Working Group, 71 percent of farmsubsidies go to the top 10 percent of subsidy beneficiaries, almost all of which are large farms.
Legislators promoting subsidies take advantage of the popular misconception that farmsubsidies exist to stabilize the incomes of poor family farmers who are at the mercy of unpredictable weather and crop prices.
Thus, large farms and agribusinesses--which not only have the most acres of land, but also, because of their economies of scale, happen to be the nation's most profitable farms--receive the largest subsidies.
The main losers in 2001 were the bottom 80 percent of farmsubsidy recipients, including most family farmers, who saw their collective share of the subsidy pie shrink from 16 percent throughout the previous five years to 12 percent in 2001.
The persistence of farmsubsidy programs results from the popular misconception that they stabilize the incomes of poor family farmers who are at the mercy of unpredictable weather and crop prices.
Farm households have fewer costs than other households because (1) the cost of living is lower in rural America; (2) farm households need to purchase less food from outside sources; and (3) mortgage and utility bills are often classified as business expenses.
Thus, large farms and agribusinesses--which not only have the most land, but also are the nation's most profitable farms because of their economies of scale--receive the largest subsidies.
Environmental Defense - Support Farm Subsidy Payment Limits(Site not responding. Last check: 2007-10-13)
Only one-third of America's farmers are eligible for farmsubsidies, most of which flow to the largest, most successful producers of feed grains, rice and cotton.
Our farmsubsidies harm many farmers in two ways: One, by inviting retaliatory tariffs that frequently fall on the producers of livestock, fruit and vegetables and other farm products are not eligible for subsidies.
Subsidies encourage many farmers to grow crops on sensitive lands like forests and grasslands, and encourage the conversion of rangeland and pastureland to row crops that require more water and chemicals.
The bill guarantees a more stable income by raising subsidies for grain and cotton growers -- traditionally, they have dominated federal farm programs -- by reviving subsidies for wool and honey, and by providing new payments for milk, peanuts, lentils and dry peas.
"Farming is the first industry of America -- the industry that feeds us, the industry that clothes us, and the industry that increasingly provides more of our energy," Bush said.
Some lawmakers have criticized the farm bill, saying its lavish subsidies prompt crop surpluses and do little to close loopholes for the corporate farmers who receive roughly 80 percent of annual subsidies.
The American Enterprise: Back in the Farm Subsidy Trap(Site not responding. Last check: 2007-10-13)
Freedom to Farm is set to expire in 2002, and the House Agriculture Committee just offered up a replacement farm bill that continues subsidies as far as the eye can see—including new payments for previously unsubsidized livestock and crops (like fruits and vegetables)—and actually increases total government payments to farmers.
To remain eligible for subsidies, for instance, acreage cannot be shifted to fruits or vegetables—fruit and vegetable producers don’t want other farmers to use their subsidies to finance a shift into direct competition with apple orchards and tomato patches.
It is a tragedy for my part of the world that the dreams embodied in Freedom to Farm were shipwrecked on the shoals of low corn, wheat, and soybean prices—because farmsubsidies, while they shore up the economic structure of agriculture, do little to preserve the long-term health of rural America.
Income subsidies make it financially possible for farmers to grow row crops on lands that are too arid or too wet, and they encourage farmers to convert pasture and rangeland to row crops that require more chemicals and water.
In particular, Grassley and many other farm state legislators have proposed a $250,000 annual cap on farmsubsidies and to close loopholes in the current cap.
For example, total farm spending in Maryland in 2003 was $66.3 million, down from 2000 and 2001, when total farm spending reached nearly $90 million.
The funding made up 26 percent of all farm income in 1993 and is widely defended as essential to rural development and to farmers' livelihoods.
The WRI study evaluated several possible combinations of changes in farm practices and federal farm policy, testing their effects on fiscal costs, farm income, and the environment.
Merely implementing alternative farm practices would reduce soil erosion 9 percent nationwide, cut pesticide spending 3 percent, and put 74 million acres of farmland under better stewardship, the study indicated.
Local farmers appear to be largely unscathed by the White House's proposal to cut $587 million in federal farmsubsidies next fiscal year, state officials and farming group representatives say.
Farms in the Midwest, West and South account for far higher shares of the federal subsidies -- 66 percent of Illinois farms receive the price-support subsidies; 70 percent in Iowa; 65 percent in Nebraska; and 78 percent in North Dakota, according to the Environmental Working Group in an October study based on 2002 figures.
The subsidy cuts barely registered as a concern for U.S. Sen. Olympia Snowe, R-Maine, who was more concerned with the potential loss of the Milk Income Loss Contract, a dairy price stabilization program whose life depends on its extension by the U.S. Congress this September.
Most of the subsidies are paid to large farm operators growing cotton and rice and, to a lesser degree, corn, soybeans and wheat.
Farmsubsidies have been a major issue in global trade talks, as poor farmers in the developing world demand that the United States and other wealthy countries cut back subsidies for their domestic producers.
Subsidy payments take several forms and are computed according to complex formulas that take account of "base acres," "target prices" and other factors.
"Subsidy reform that helps more farmers and ranchers is long overdue, and we applaud the president for addressing the issue," said Environmental Defense farm policy campaign director Scott Faber.
Only one-third of America's farmers are even eligible for farmsubsidies, most of which flow to the largest, most successful producers of feed grains, rice and cotton.
Farmsubsidies also harm the environment by encouraging many farmers to grow crops on sensitive lands, like wetlands and grasslands, and by encouraging the conversion of rangeland and pastureland to crops that require more water and chemicals.
State forgets to renew farm subsidy- The Times of India(Site not responding. Last check: 2007-10-13)
Given in 2000-end with drought as the pretext, and extended thrice, the subsidy, which came to Rs 660 crore per year, was basically meant to nullify the “negative” impact of the sharp increase in farm sector tariffs for agriculture declared by the Gujarat Electricity Regulatory Commission (GERC).
It has so far released just $50 million, and has told officials that unless energy sector reforms are undertaken and subsidies to the farm sector reduced, rest of the amount would not be disbursed.
Which means, the total annual subsidy to the farm sector till November 2002 came to Rs 1,760 crore.
Farm Subsidy payments and more waste of our tax dollars(Site not responding. Last check: 2007-10-13)
With this realization came pronouncements from many Midwest legislators that crop subsidy reforms were needed, such as capping subsidies to the largest of corporate agribusinesses.
Moreover, as other legislators from around the country discovered on EWG's farmsubsidy database how little farm bill support their farmers were getting, they also vowed to push for reform -- mainly by pushing for funding increases to the farmland conservation programs.
In early October, 2001, about a year before the 1996 farm bill was set to expire, the House passed a bill that devoted nearly 75 percent of its funding to wasteful, status quo crop subsidy programs while funding effective and popular farmland conservation by only 22 percent.
U.S. Wants Global Farm Subsidy Curbs (W.T.O)(Site not responding. Last check: 2007-10-13)
Beyond the curbs on trade distorting subsidies, the administration also called for global tariffs on farm products to be cut from a worldwide average of 62 percent to an average of 15 percent in five years.
While the farm proposal enjoyed strong support among U.S. agriculture interests, it was expected to run into heavy opposition from other countries, such as the 15-nation European Union and Japan, who heavily subsidize their own farmers and have high barriers to limit the entry of farm goods from other nations.
In May, the EU accused the United States of violating current curbs on farmsubsidies when President Bush signed into law a new farm bill that is expected to cost $190 billion over 10 years, $83 billion more than the cost of continuing current programs.
The untold story of the farm bill is that it does very little for average farmers and producers, but will drive up spending significantly to benefit an even smaller number of powerful recipients.
Current farm bill legislation is expected to cost at least $171 billion over 10 years and the biggest slices of the pie are still likely to go to wealthy corporate farmers.
Under a typical crop-sharing arrangement, landlords contribute the land and a pre-arranged portion of other farming inputs in return for a share of the crop sales and a share of the farmcommodity program payments for which the farming operation is eligible.
www.progress.org /tcs108.htm (789 words)
EWG || Farm Subsidy Database(Site not responding. Last check: 2007-10-13)
In Geneva, global trade negotiations aimed at boosting the prospects of the poorest nations are deadlocked, largely because status quo commodity interests in the U.S. and Europe are fighting efforts to trim farmsubsidies and lower trade-constricting agricultural tariffs.
A series of new EWG analyses finds that USDA farmsubsidy payments are not only highly concentrated among the largest recipients, they are also highly concentrated geographically-and politically.
American taxpayers spent a staggering $143.8 billion on farmsubsidies over the past ten years, more than $104 billion of which (72 percent) went to the top 10 percent of recipients--some 312,000 large farming operations, cooperatives, partnerships and corporations that collected, on average, more than $33,000 every year.
For perspective, consider that in the year 2000 alone, U.S. spending on farmsubsidies exceeded the gross domestic product of more than 70 nations, based on federal government figures.
To prevent this, Congress also has environmental conservation subsidies that pay farmers not to cultivate their land, resulting in higher prices for crops that are thus made scarcer.
Another myth is that farmsubsidies can help U.S. exports, and therefore the U.S. economy, because they make our food cheaper for foreigners to buy.
The federal government is giving millions of dollars in farmsubsidies to people who should not receive them, thanks to vague government regulations and insufficient oversight, according to congressional investigators.
Mary Kay Thatcher, director of public policy for the American Farm Bureau Federation, also defended the agency, saying its definitions of who qualifies for the money are about as precise as can be expected given the variety of farming operations in the United States.
Individuals and various entities are usually limited to $180,000 in annual farmsubsidies each, but they may receive as much as $360,000 per year, if they join as many as three partnerships.
Giving Away the Farm: The 2002 Farm Bill | Food First/Institute for Food and Development Policy(Site not responding. Last check: 2007-10-13)
While the farm bill is a big bonanza for large producers of favored crops such as corn, soybeans, and cotton, small family farms are shortchanged.
New subsidies mean that many U.S. cotton growers-whose average net worth is $800,000-will receive half of their income from the government this year, though only a relatively small share of the farm population, just 25,000 of America's 2 million farmers, actually raise cotton.
The new farm bill tries to make it appear that the boost to farm support is technically within the limits set by the WTO Agreement on Agriculture (AOA) by asking the USDA to keep the subsidies within the limit of $19.1 billion set in the AOA for the U.S. schedule of payments.
The Daily Star Web Edition Vol. 4 Num 282(Site not responding. Last check: 2007-10-13)
Prime Minister Khaleda Zia yesterday pledged increased budgetary allocation and subsidy for agriculture in the coming fiscal and announced a number of other measures aimed at a "new revolution" in the farm sector.
Khaleda said the role of farm workers is very crucial to alleviating poverty and attaining food autarky, rural development and economic progress.
She also assured the farmers and agriculturists of significant raise in the budgetary allocation as well as subsidy for agriculture in the next budget.
The United States has not used our export subsidy program for grain in nearly 10 years, and while Europe has offered to give up export subsidies in the Doha negotiations, they have restarted export restitutions in the current marketing year.
Export subsidies are widely agreed to be the most distorting and egregious form of subsidy, and Europe's decision to restart its export subsidy regime this year was universally criticized.
Comprehensive farm policy also provides a significant benefit for consumers to which we all have become accustomed: food expenditures in the United States consume the lowest share of disposable income of any country in the world.