Home
/
RELIGION & LIBERTY ONLINE
/
Fertile Ground for Farm Subsidy Cuts
Fertile Ground for Farm Subsidy Cuts
Oct 15, 2026 9:38 AM

Here’s the piece I contributed to today’s Acton News & Commentary:

Fertile Ground for Farm Subsidy Cuts

By Elise Amyx

With debt and budget negotiations in gridlock, and a growing consensus that federal spending at current levels is unsustainable, political support for farm subsidies is waning fast. What’s more, high crop prices and clear injustices are building bipartisan support for significantly cutting agricultural subsidies in the 2012 Farm Bill.

The New Deal introduced an enormous number of agriculture subsidy programs paved with good intentions to help struggling farmers, create a stable food market and alleviate poverty. While many other industries have been deregulated since the Depression-era reforms, agricultural subsidies have grown. Now considered by some to be America’s largest corporate welfare program, it is obvious that the government has failed to meet its original goals.

The glaring injustices built into farm subsidy policies explain why so many on both the political right and left routinely describe them as immoral. Subsidies reward mercial enterprises — in good times and bad — and shut out small farmers. Developing countries that desperately need to boost agricultural exports pete with subsidized, over-produced crops from wealthy nations. Subsidies also drive up the cost of food for the poor and working families.

Iowa farmer Mark W. Leonard, in a 2006 Wall Street Journal interview, described how he brought a farmer from Mali to talk to local church gatherings about the adverse effects of subsidies. “From a Christian standpoint, what it is doing to Africa tugs at your heartstrings,” he said. The bottom line is that the mercial farmers win and everyone else loses.

munities dependent on farming seem to have the long end of the stick, but this isn’t true. According to an Iowa State University study, the most highly subsidized areas in the United States are seeing little to no economic growth. In counties where farm payments are the biggest share of e, job creation is very weak. This can possibly be attributed to highly subsidized agribusiness buy outs of family farms. It is ironic that farm payments are intended to foster growth but instead they appear to be linked with subpar economic performance.

Though meant to support the es of farmers and promote rural economic growth, subsidies are making rich farmers richer. Subsidies don’t usually end up where they are most needed because the top 10 percent of recipients receives 74 percent of the payments. Instead of helping those most in need, farm payments are just another failed government welfare program.

Agricultural subsidy programs are funded by taxpayers’ dollars and end up raising the cost of food for the domestic consumer. In other words, we are paying for subsidies twice over. Even though price supports are intended to stabilize food production and thus prevent wild price swings, a Heritage Foundation research report found that consumers actually end up spending more on food in the long run when all price distorting effects are considered. Commodity subsidies encourage overproduction and lower prices, but the Conservation Reserve Program encourages underproduction and raises prices. Tariffs raise the price of imported food. For example, the sugar program operates as a cartel by controlling prices and limiting imports, which significantly raises the cost of sugar.

It is poor budgetary stewardship on the government’s behalf to fund a program with taxpayer dollars that makes food more expensive for consumers. According to the Heritage Foundation, the Organisation for Economic Co-operation and Development estimates the average household spent “$216 in annual taxes in addition to $104 in higher food prices.”

Subsidy payments modity specific, so unless you’re growing corn, wheat, soybeans, or another subsidized crop, you’re on your own. Jack Thurston, co-founder of FarmSubsidy.org told Time Business, “The bigger you are, the more subsidies you get. It is the reverse of what you think a subsidy is.”

Because farm payments often encourage overproduction and consolidation of agribusinesses, the price of land is inflated, which makes it very difficult for would-be farmers to enter the market. Rather than giving them a fair opportunity, subsidies undermine the entrepreneurial spirit of young domestic farmers.

Commodity price supports, export subsidies and tariffs modity prices below the world price, which makes it difficult for foreign countries pete. Surpluses of overproduced U.S. crops are dumped on the international market at prices well below the cost of production, creating even more price volatility. Many poor nations have few other options outside of subsistence farming. Subsidies keep poor nations poor and dependent on developed countries.

There is no doubt that farming is a difficult, volatile business filled with risk and uncertainty — and so are many other successful industries that do not receive any government hand outs. Farmers receiving payments should be careful not to view the government as a savior, who will reduce risk, create certainty and save the day if something bad happens. This is a dangerously dependent position to be in, and it is morally problematic when es at the expense of everyone else.

A farmer from Mississippi by the name of Lanier, in a recent call in to NPR, said he doesn’t need the government to help him run his business: “I’m not going to be very popular with ment, but my family has farmed [6,000] to 8,000 acres every year. We own about five of that and lease the rest depending on what we think the market conditions will be. But, quite frankly, we don’t need these subsidies … we being the larger farmers; we’re getting paid seven digits to not farm areas of our farm. That’s ludicrous. […] We cry, hey, it’s a risk. But tell me what business there is out there that doesn’t have a risk.”

Agricultural subsidies make little economic sense and they display many of the problems that characterize other large welfare programs: injustice, dependency and a slew of unintended consequences.

But, good news might be just around the corner. Recent reports suggest agricultural subsidies will see drastic cuts in the ing farm bill due to modity prices and the budget crisis. Americans should be cautiously optimistic that America’s largest corporate welfare program will take a big hit in 2012.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Federal dorms
The Chronicle of Higher Education reports on the closing of a federal housing loophole. The full article is accessible only to subscribers, so I’ll summarize. College students for a number of years have been taking advantage of Section 8 (federally subsidized housing) rules to live in “projects” while they go to school. Such housing is, obviously, supposed to be for the needy, but decidedly un-needy students have been benefiting. The Des Moines Register originally investigated the story (described here) and...
Who is Pope Benedict XVI?
Despite his many writings, scholarly expertise and long service to the Church as Prefect of Congregation of the Doctrine of the Faith as Cardinal Joseph Ratzinger, there’s still much of an unknown quality surrounding Pope Benedict XVI. In the last two weeks, three mentators made some informed guesses about what to expect from the new pontiff. The National Catholic Reporter’s John Allen wrote a piece for The Spectator (U.K.) entitled “The Pope won’t back Bush” (no longer available on-line to...
Epiphany and creation
Today, Orthodox Christians all over the world are celebrating Epiphany, one of the great feast days of the Eastern Church. Epiphany is, for the Orthodox, the manifestation of the Lord’s divinity and the mystery of the Trinity, the inauguration of the sacrament of baptism, and the beginning of the preaching of the Kingdom of Heaven. For the Orthodox, Epiphany is also a profoundly ecological moment. Churches hold Blessing of the Waters services memorate Christ’s baptism in the Jordan River, an...
Morse on modern sex and marriage
Check out this interview with Acton senior fellow in economics Jennifer Roback Morse from the Zenit News Agency, “Righting the Wrongs in Modern Sex and Marriage.” She talks about writing her recent book, Smart Sex: Finding Life-Long Love in a Hook-Up World (Spence) and says, “I wanted to write a book for the ordinary person who wants to get married and stay married. Most readers are not economists or theologians, so I wanted to convey to the public that this...
Beating back the socialists
There are two good articles out there in today’s press about socialist thinking, which alas is all too prevalant, especially in issues concerning the environment. The first is a tribute to Arthur Seldon in the Daily Telegraph. Some of Seldon’s friends and family are gathering in a London synagogue today to remember one of the founders of the Institute of Economic Affairs. The creed was capitalism, a concept about which Seldon wrote his most distinguished book in 1990, and which...
Revolutionary papacies
Acton President Rev. Robert A. Sirico appeared today at the January Series of Calvin College in Grand Rapids, Michigan to introduce a lecture by theologian and author George Weigel. In his address, entitled “Revolutionary Papacies: John Paul II, Benedict XVI, and the Future of the Catholic Church,” Weigel touched on 10 areas in which Pope John Paul II made important contributions to Catholic teaching, ecumenism, and world politics, and also described some of the major challenges facing Pope Benedict XVI,...
Federal vouchers are coming!
The long wait is finally over. Federal vouchers ing! Before you get too excited, however, I have to inform you that the vouchers are not for education. You can’t use these vouchers to send your child to the school of your choice. Instead, because of the government-mandated switch for broadcast TV from analog to digital bandwidths, set for Feb. 17, 2009, upwards of 20 million television sets will be obsolete, only able to receive the then-defunct analog signals. “To avoid...
Pope’s address to World Alliance of Reformed Churches
It took place this morning in the Vatican. Click here for the text from the Vatican’s website. ...
The population bomb (myth) explodes
Topping today’s Science/Nature section at BBC News, “Population size ‘green priority'”, by Richard Black. The article focuses on the thoughts of Professor Chris Rapley, Director of the British Antarctic Survey, who contends that the “current global population of six billion is unsustainably high.” This is to say nothing of the growth rate and future generations. Based on a column Rapley wrote for a new BBC feature, The Green Room, the article presents the view that “humankind is consuming the Earth’s...
A tale of two monopolies
Monopoly #1: I was somewhat shocked the other day when I heard a strong critique of the much-vaunted Canadian national health care system on NPR. I wasn’t dreaming – here’s the link to prove it. The report notes that “after 50 years, the Medicare dream has turned nightmare for many” – something that many advocates for socialized health care in the US would do well to take note of. It also takes note of the recent precedent-setting court decision in...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved