How To Pay For It

Reimagining Agricultural Subsidies

Government subsidies to farms have been a large part of the US agricultural economy since the Great Depression when subsidies were used to offset the economic burden of continually producing goods even when a nation is in a surplus. The logic has largely been to ensure there is a surplus of food available in the event of failing crops harvests, while simultaneously ensuring a base price of such commodities. This system worked following its implementation and successfully ameliorated post Dust-Bowl fears.

However, over the past century a majority of the farms (and their respective crop surpluses) of the American West have been consumed by agricultural conglomerates which have grown to near incomprehensible size and stature. A fact which is plainly observable when looking at the annual U.S. grain production: In as far back as1997, Cornell university found that the U.S. was producing enough grain to feed "nearly 800 million people" (Cornell Chronicle, 1997, para. 2) more than twice its existing population.

Such a reality has forced some like us at CSWC to question the continued need for such subsidies as biggest subsidy recipients are a far cry from the Great-Depression-Esque farmer for whom the funds were intended.

How To Pay For It: About Us

During the height of the Dust Bowl, the USDA historical archives estiamte that nearly "25% of the population" or 30,000,000 people lived on "the nation's nearly 6.5 million farms and ranches." (White, 2020, para. 2). With such massive numbers of the population being subsequently subject to extreme economic hardships the need for government to step in was without question. However, while this was an admirable and prudent thing to do, the fact is that as of 2017, "the number of people living in farms ha[s] dwindled to about 3.4 million" or about 1% of the population.

With that said, one might assume that the presence of such subsidies is what continues to allow for the cheap and unfettered access to food we have in the States without causing remaining farms to collapse into economic turmoil. However, this is simply not the case as the conglomerates of today continue to take handouts while they see up to 20% annual increases in profit.

Thus, such industries are clearly not in need of financial assistance, a reality that can be seen plainly when assessing the historical context of the situation: “In 1949, government payments [subsidies] made up 1.4% of total net farm income - a measure of profit - while in 2000 government payments [subsidies] made up 45.8% of such profits...In 2019, farms received $22.6 billion in government payments, representing 20.4% of $111.1 billion in [annual industry] profits” (USAFACTS.org, 2020, para. 2&3).

Interestingly, between 1995 to 2016 "seven states …[paid] nearly 45% of all benefits to farmers" who were primary cultivators of a commodity crops like soy, wheat or corn (White, 2020, para.13). In Iowa for example, where "[a]bout 90 percent" (Iowa's Most Popular Crop, 2020) of state land is dedicated to farming, (twenty-three million acres of which or about "63 percent of land in the state" is dedicated to farming soybeans, and corn (Bittman, 2019)), "10 percent of producers... received 45% of the [total allotted] subsidies" (Babcock, 2001, para. 4) between 1996-1998.

Moreover, as of 1999 it was found that "60% of...U.S. agricultural propduc[ers] recieve[d] [only] a 3 percent subsidy share" (Babcock, 2001, para. 2). Meaning that 97% of all subsidies were received by just 40% of all U.S. agricultural producers, a reality which painfully illustrates that fact that "the largest commercial farms" often do in fact, receive the most subsidies (Babcock, 2001, para. 5 ; White, 2020, para. 6).

To put this in perspective for today, corn and soybean growers received the most assistance in the most recent farm bill, receiving $2.2 billion and $1.6 billion (respectively), while producing $50.4 billion worth of corn and $41.3 billion worth of soybeans (USAFACTS, 2020, para. 9).

How To Pay For It: About Us

Given the assessment above it seems the facts are clear, the bulk of the nation's largest subsidy recipients represent some of (if not the) richest cultivators in human history as their 2020 profits are predicted to top $96 billion (White, 2020, para. 6).

As profits like this these become a norm in the industry, such entities are the furthest thing from the dust-bowl farmer in dire need of financial support to continue feeding the nation.

As of this year the top 1% of recipients in this industry (who also happen to be the wealthiest) received 26% of the $223.5 billion allotted in subsidy payments (Amadeo, 2020, para. 14). That averages out to $2.42 billion per year, or $201 million per month.

By simply reallocating the subsidies that would have gone into the hands of the richest farming conglomerates who have no pragmatic need for it into a Hydroponic-Construction/Research-Fund, the U.S. could work towards a cleaner, more sustainable future by funding further hydroponic research and mass-construction of vertical farming facilities around the nation, providing hundreds of millions with access to fresh, healthy food, saving the planet in the process.

With that said, while it is true that "corn prices [were]...too low to cover the cost of growing it this year" (Griggs, Miller & Sanderson, 2020, para. 7) this should not be cause to reconsider a reallocation of such subsidies. Setting aside the fact that such wealthy entities are more than capable of absorbing a loss, I make this claim as according to the American Enterprise Institute, farm subsidy payments in such scenarios were often "three to four times bigger than actual loses" with most of the money going to farms who already receive the lion's share of most federal crop instance programs (Belasco & Smith, 2019).

To be clear, while realistic and plausible this idea is in its infancy and is in need of significant input and legislative guidance before tangible changes could be lobbied towards and eventually felt. However, while our quest for a hydroponic revolution is just beginning there are a variety of ways you can start making an impact today!

Click the button below to find out how!

Take Action

How To Pay For It: About