As you might have heard by now, it’s time to renew the Farm Bill. Thanks President Franklin D. Roosevelt, every 5 years this legislation to ensure that America’s farmers produce food and that Americans can afford to purchase has been reauthorized for nearly 8 decades.
The first farm bill was named The Agricultural Adjustment Act and was enacted May 12, 1933 as an integral part of the New Deal 79 years ago. It restricted agricultural production by paying farmers subsidies not to plant on part of their land. This was intended to reduce crop surplus, consequently boosting the market value of crops.
The current Farm Bill is a large multi-aspect omnibus agricultural and food policy legislative instrument administered by the Department of Agriculture.
Much of the controversy regarding the successive iterations of the farm bills has focused on the “subsidization” of large corporate farming operations in the mid-western American “breadbasket” at the expense of smaller farmers like the ones where I grew up. But it’s actually a misnomer to call these policies crop subsidies. Especially since 1953, farm bill funding has been based on the size of the farm and household income of a particular farm and is structured proportionally as household income.
According to the New York Times, “Farmers who grow corn, wheat, soybeans, cotton and other crops receive about $5 billion in direct payments. These payments have become harder to justify as farm income has risen to historic levels — a record $101 billion last year”.
Other complaints have focused on spending money on sparsely populated rural regions of America at the expense of urban areas with presumably greater needs. Many on both sides of the aisle have also questioned the wisdom of “agricultural welfare”.
I’d like to focus on the nutritional assistance aspect of the bill and how it demonstrates a set of priorities in what is effectively a redistribution of wealth from poor American to large corporate interests.
The Supplemental Nutritional Assistance Program (SNAP), as it has come to be called, provides financial assistance for food purchasing to low income people and families and is administered by the Food and Nutrition Service of the Department of Agriculture. It’s popularly known as the Food Stamp Program. In the 2011 fiscal year, $76.7 billion in food stamps were distributed. As of March 2012[update], 46.4 million Americans were receiving on average $133.14 monthly.
This will look (and taste) much different in 2013.
The Senate version would cut $4.5 billion in Food Stamps. It proposes a total cost of nearly $1 trillion over the next 10 years. It would fund dozens of price support and crop insurance programs for farmers and food assistance for low-income families.
Various food and nutrition groups have objected. While they said the bill provided incentives for low-income families to buy more fruits and vegetables due to new guidelines, they argue that the cuts will have a devastating effect on low-income families during a time of high unemployment.
In an effort to safeguard the opportunity for all Americans to have access to healthy, nutritious food, U.S. Senator Kirsten Gillibrand made an impassioned plea to restore proposed cuts of $4.5 billion in food assistance, part of the bill. She was ultimately unsuccessful.
According to Gillibrand, a $4.5 billion cut to SNAP funding would affect nearly 300,000 New York families in her home state alone. These Americans needing help would stand to lose approximately $90 a month, according to estimates from the nonpartisan Congressional Budget Office.
This past Thursday, the House Agriculture Committee had their turn at the nutritional fillet knife. It voted to gut even more from the program. Their version of the bill would cut 16 ½ billion from this critical program that low-income Americans rely on. To be clear, more than 2 million Americans will lose benefits under the farm bill devised by the committee’s leaders, Representatives Frank Lucas of Oklahoma and Collin Peterson Minnesota.
Like the Senate bill, the House version would end direct cash payments to farms, 26 of which received $20 million dollars each. Although those cuts could have covered the money cut to maintain current levels in the food stamp program. The House Committee however, has sent 70 % of those savings back into farming interests for crop insurance and new price support programs, covering the gap between sale price and predicted market value. This certainly belies the “free market” philosophy and spending cut rhetoric we have been inundated with.
Chris Hayes ran a very good summary discussion of this latest debate on Saturday. Hayes has captured the point well. He points out that “On the same day they vote to repeal the ACA they come up with new price support programs and subsized crop insurance for farmers that are large, industrial interests.” This is certainly not smaller government, but rather a redistribution of resources from disadvantaged to corporate agricultural interests. The legislation stipulates that the bigger the farms are, the more money they get from the government. It’s actually based on household income, not crop volume.
Will the end of direct payments switching to crop insurance model – change the way that these benefits work?
Apparently not.
George Naylor, former President National Family Farm Coalition, claims that the system will continue to perpetuate “cheap food cheap corn, cheap soybeans so they can keep feed animals in inhumane corporate feedlots owned and controlled by the large packing companies that are putting out lousy meat and bring (us) our food from all over the world from thousands of miles away and focusing our attention on the issue of welfare when we should be asking what’s happening to the commons, what’s happening to the farmlands”.
One of the results we’re getting is mile after mile of mono-crops. This means an inventory of strictly corn or soybeans with extensive soil erosion. With the use of more and more use of pesticides we end up with extensive problems with pests that develop immunity to the tried and not so true farming practices. No farm bill since 1953 have has addressed any of these issues. This is a bipartisan policy on behalf of corporate agribusiness.
Reliance on monocultures and vast tracts of single crops sold in international commodities markets will happen independently of any farm bill. The real sound alternative to raising corn and soybeans would be hay, pasture and small grains in a crop rotation where the livestock are being raised on family farms instead of large inhumane factory farms.
At the same time the House version would give farmers a big raise in income, expand crop insurance by $9.5 billion and cut conservation programs by $6 billion.
In this time of high unemployment, an average of ¼ of American children falling into poverty and severe income disparity we are due for a cut in nutrition assistance to the families who need it most.
So in effect what we’re getting is a redistribution of resources that is producing grossly inefficient economic rent and use of valuable land while millions of Americans will be forced into even worse hardship in an effort to eat.
Since 2009, one million more children in America have fallen into poverty. This brings the total to an estimated 15.7 million poor children in 2010, an increase of 2.6 million since the recession began in 2007, according to researchers from the Carsey Institute at the University of New Hampshire. According to the nonprofit group Feed the Children, 12 million children are in danger of going hungry.
The need to cut the deficit and debt is all we seem to hear from those members of Congress who portray themselves as our guardians to protect us from the impending fiscal cliff. But redistributing federal money from family nutrition to large corporate agricultural enterprises certainly betrays the “smaller government” mantra so popular among fiscal conservatives. This is a clear matter of powerful voices usurping attention and resources from those with least power and a desperate need for help, a familiar tale.
Senator Gillibrand has said it well: “….families who are living in poverty, who are just trying to figure out how to keep the lights on and put food on the table, they did not spend this nation into debt, and we should not be trying to balance the budget on their backs. … We should be helping the most needy among us. Our children, our seniors, a family at risk.
The most poignant remark by the Senator invoked scripture: “In Matthew 25, the first question Christ asks on Judgment Day is, ‘Did you feed the poor?’” She went to say, “It’s unacceptable that we have Republican advocates who are saying it’s immoral to support food stamps.”
We certainly don’t have a bumper crop of morality in 21st Century America nor do we seem to know what it would even look like. We can only hope that the final bill that emerges from the bicameral conference will have some regard for Americans who need help feeding themselves and their families.



9 Comments

The bill subsidizes worn out land at the expense of the poor. This is my summary.
And no one is talking about “commodity market manipulation”. You only have between now and November to get that subject on the table. After they get elected the subject always changes to whatever they want to talk about.
I’ve been trying for 3 1/2 to reach the Obama Administration without success in regard to “commodity market manipulation” but nobody’s home. Could you tell me why, in the history of this country, none of these commodities ever went as high as they did during the Bush Administration?
Could you tell me why those same commodities went even higher during the Obama Administration? Check this website for verification
http://wp.me/p2vRlu-4
You make an excellent point lakota. In the interest of feeding the 12 million children who need help, I’d recommend a progressive commodity transaction tax earmarked for SNAP related assistance.
How do you tell a kid who’s hungry, we’re going to take even more food away from you?
This seems like a pretty good article. That CBO estimate says that 500,000 people altogether would see their benefits go down by $90/month under the Senate plan. If you are collecting SNAP, whether you are affected has to do with how your state does things; I think if you are from a very conservative state, you might be affected, because it depends on how your state welfare agency decides to do things. The House plan has greater cuts to SNAP as I think you say in your article.
The subsidies with the farm bill are crop insurance premium subsidies and away from direct payments. I take issue with your contention that subsidies are based on household income rather than the size of your crop. I’d like to see evidence of this. Because if it’s all about crop insurance subsidies, then it would be all about your acreage, not your income. Unless I’m missing something here.
But I’m with you all the way on the SNAP issue: no doubt agriculture is a major hypocrite about government. They want government to help them and have all kinds of rationales about why government should help them, but when it comes to others they are much less enthusiastic.
Yes. Thanks cal222. And putting more money into mono-crop farms is a waste of money and land, not to mention taking food away from families.
The tax you mentioned would be a good idea. You were referring to a legitimate commodity market, while I’m referring to an illegitimate commodity market that’s taking money from all of us.
For most people, it’s simply a matter of re-adjusting their budgets to accommodate higher living costs that have resulted from “manipulated commodity markets”, poor people don’t have budgets they can re-adjust. They have to do without, or engage in some criminal enterprise to make up the difference.
This website illustrates commodity market manipulation that began during the Bush Administration, and has continued through the Obama Administration. Check it out and tell me what you think http://wp.me/p2vRlu-4
It’s good information and not surprising. Bubbles are created similar to the housing market a few years ago. I’m not sure how to prevent this since it’s a global phenomenon other than through a multinational organization like OECD. I mentioned the tax because it could discourage hyperspeculation. My original point with this post was focused on the needs of the poor and hungry who are being denied benefits.
Mr. Davis, your efforts to focus on the needs of the poor and hungry are quite admirable. The high food prices which have resulted from “commodity market manipulation” are related to the poor and hungry. If they didn’t have to pay them, they would be a lot less poor.
This is not a bubble similar to the housing market. These prices did not result from “hyperspeculation”, these prices resulted from “commodity market manipulation”. They have nothing to do with any kind of “global phenomenon”. These corn prices are determined at the Chicago Board of Trade, and they are “supposed to be” regulated by the CFTC, Commodities Futures Trading Commission in Washington DC. No tax would have any affect on the astronomical profits that are derived from this commodity market manipulation.
I can understand your desire to avoid any and everything involving something with political implications and I empathize with your sentiments; however, this website http://wp.me/p2vRlu-4 makes no allusions to avoiding anything political.