The Schizophrenia of U.S. Farm Policy

[Ichingcarpenter]

April 22, 2008
Ernest C. Pasour Jr., Randal R. Rucker

Investor’s Business Daily




The price of the new farm bill, final details of which are being hammered out by congressional negotiators, has risen to $280 billion over five years, according to news reports.

“The proposal includes provisions encouraging investment in biofuels and wind energy, help for retired and disabled farmers, and a faster tax write-off for owners of racehorses, among other things,” writes Greg Hitt in the Wall Street Journal.

In short, there is something for almost everyone involved in agriculture. But what about consumers? They often pay twice: first, in higher grocery prices, and second, through an array of tax-financed subsidies.

Politicians claim to be friends of the small “family farmer,” but most government payments go to large farms, with the largest 9% of all U.S. farms (with revenue above $250,000) getting 56% of all payments under the current bill, enacted in 2002.

More than half of U.S. farms receive no payments at all, because they don’t produce corn, wheat, cotton or other major crops that qualify for commodity payments.>>>>snip





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