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Agricultural Subsidies
Beneficiaries
International Impact
Links
References
Agricultural Subsidies
Agricultural subsidies are federal payments that provide supplement income to farmers that grow designated crops such as: corn, wheat, rice, and cotton. The program originated in the great depression and was intended to provide a stable living for a tumultuous industry.
America’s current policies on agricultural subsidies are having a negative impact on the environment and on foreign farmers. The hypocrisy of creating trade barriers to foreign farmers while simultaneously demanding greater access to their markets diminishes America's international standing.
Beneficiaries
The Heritage Foundation Senior Fellow Bruce Riedl stated that "federal farm policies specifically bypass family farmers. Subsidies are paid per acre, so the largest (and most profitable) agribusinesses automatically receive the biggest checks."1
In addition, Timothy Wise of Tufts University wrote that: "Industrial livestock operations are among the most important beneficiaries of agricultural policies that depress the prices for feed. With feed costs as the most important operating cost in industrial livestock operations, the benefits are significant." 2
Main Benficiaries:
- Large Agribusinesses
- Industrial Livestock Opertaions
The common misconception about agricultural subsidies is that they are used to support family farms and rural communities. The fact that the lion's share of the funding is going to agribusinesses shows that these policies are not serving the common farmer and are not serving Americans as a whole. Few people are aware that the current policies also benefits those that feed livestock prior to slaughter.
International Impact
“The sale of agricultural products to developing nations at below market prices has often had a devastating effect on the ability of farmers in those nations to prosper, and the continuation of such subsidies has become a stumbling block to efforts to dismantle international trade barriers.”3
American agricultural subsidies are hurting farmers that can least afford it. American hypocrisy is at its peak when it comes to the concept of free trade. US trade negotiators have demanded increased access to the financial and utility sectors of developing nations without removing the farm subsidies that prevent foreign farmers from competing fairly with Americans.
Links
Environmental Working Group - A non-profit organization interested in promoting public health and protecting the environment. Established in 1993 with the specific goal of protecting the population most a risk - children, babies, and infants. Also to promote changes to current policies that damage the environment and deplete natural resources.
Global Policy Forum - A non-profit group that monitors policy making at the United Nations, promotes accountability of global decisions, educates and mobilizes for global citizen participation, and advocates on vital issues of international peace and justice.
United States Department of Agriculture - Federal agency tasked with developing and implementing policies related to food, agriculture and natural resources. The agency works with congress in developing the "Farm Bill" which contains the measures for agricultural subsidies.
The Heritage Foundation - A conservative "think-tank" that promotes conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.
References
1 Real Clear Politics. Elections 2008 Page. <http://www.realclearpolitics.com/articles/2007/08/dead_men_farming.html>. Accessed Sept. 11, 2007.
2 Identifying the Real Winners from U.S. Agricultural Policies. Timothy A.Wise. <http://ase.tufts.edu/gdae/Pubs/wp/05-07RealWinnersUSAg.pdf>. Accessed Sept. 13, 2007.
3The Columbia Encyclopedia, Sixth Edition Copyright© 2004, Columbia University Press. Licensed from Lernout & Hauspie Speech Products N.V. All rights reserved. <http://www.bartleby.com/65/ag/agrisub.html>Accessed Sept. 11, 2007.
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