changing the rules for 2010 recipients, the specifics of these changes have yet to be U.S farm subsidies were once intended to help established. farmers ride out variations in their markets. Since then, they have become a massive part of Large farmers have political clout and will have the federal budget, costing taxpayers billions per undue influence on the modification of the rules year. governing who gets the money. Because the largest farmers get the most Today, family farms netting up to $2.5 million government aid, aid further enriches profitable after expenses receive government checks. In farms. This system fails to support small farms recent years, Sam Walton’s heirs, Paris Hilton’s and creates tougher competition for them. grandfather, Microsoft’s Paul Allen and Ted Turner all have received farm subsidies. It is hard to direct payments to farmers who really need aid because enforcement of Economies of scale give the corporate farmers a eligibility requirements is very hard. A 2004 big advantage over small farmers, but the Government Accountability Office report subsidies magnify the advantage and drive up detailed multiple instances of payments to the price of farmland by up to 30%. ineligible parties who did not qualify for government assistance. farmers can’t afford to buy more land to grow more crops to make more money. Instead, Although the Obama administration has vowed the larger entities often buy up struggling, small to modify the program, and Agriculture farms, turning the owners into rent/tenant Secretary Tom Vilsack is now in the process of farmers. Information Sources: U.S. Department of Agriculture MN Council on Economic Education Environmental Working Group American Farm Bureau Facts’ ‘Farm Helium US Politics (www.helium.com): Should American farmers continue to receive government subsidies? –
U.S farm subsidies were once intended to help farmers ride out variations in their markets. Since then, they have become a massive part of the federal budget, costing taxpayers billions per year. Because the largest farmers get the most government aid, aid further enriches profitable farms. This system fails to support small farms and creates tougher competition for them. It is hard to direct payments to farmers who really need aid because enforcement of eligibility requirements is very hard. A 2004 Government Accountability Office report detailed multiple instances of payments to ineligible parties who did not qualify for government assistance. Although the Obama administration has vowed to modify the program, and Agriculture Secretary Tom Vilsack is now in the process of changing the rules for 2010 recipients, the specifics of these changes have yet to be established. Large farmers have political clout and will have undue influence on the modification of the rules governing who gets the money. Today, family farms netting up to $2.5 million after expenses receive government checks. In recent years, Sam Walton’s heirs, Paris Hilton’s grandfather, Microsoft’s Paul Allen and Ted Turner all have received farm subsidies. Economies of scale give the corporate farmers a big advantage over small farmers, but the subsidies magnify the advantage and drive up the price of farmland by up to 30%. farmers can’t afford to buy more land to grow more crops to make more money. Instead, the larger entities often buy up struggling, small farms, turning the owners into rent/tenant farmers. Information Sources: U.S. Department of Agriculture MN Council on Economic Education Environmental Working Group American Farm Bureau ‘Farm Facts’ Helium – US Politics (www.helium.com): Should American farmers continue to receive government subsidies?