The End of Handouts: Farm Subsidy Program

Agriculture is a constantly changing industry, methods and technology are constantly changing. Like the industry, in addition to agricultural subsidies, the plans surrounding it are changing. The agricultural grant program has changed little since the early 1930s. I lived in a farm for a lifetime and insisted my colleague to prove that agricultural subsidies are necessary to maintain the function of the industry. These discussions often turn into "gloomy cry" games and usually end with a joke 's manner.

Most direct aid is not used by livestock producers or producers of fruits and vegetables, but by producers of a few field crops. In the three major agricultural subsidies programs of insurance, ARC, PLC, over 70% of the treats given to farmers by maize, soybean, and wheat, only 3 agricultural crops are subsidized by farmers and administrative fees to provide insurance policy Have been paid. Cost of private insurance company. Over the past 5 years, the annual average of insurance subsidies was $ 6.7 billion, insurance company subsidies were $ 1.5 billion, underwriting losses were $ 300 million and federal administration costs were $ 200 million 9.

Congress expanded crop insurance to the largest farm program. For other farm programs, the status of wealthy subsidy recipients is public information, which may be politically confusing for farm planning supporters. However, through insurance subsidies, Congress basically cleans up cash through insurance companies. This hides the identity of the recipient. Agricultural risk compensation (ARC). This plan pays subsidies to farmers if income per acre or county income per acre is below the benchmark or guarantee level. Generally, the lower the price and income, the greater the subsidy. This program covers more than 20 crops, from wheat and corn to chick peas and mustard seeds. ARC subsidies vary, but it was $ 3.7 billion in 2017

In 2014, Congress passed another huge agricultural bill. This bill changed the structure of subsidies, but did not lower the overall welfare level. The law terminated direct payment plan, anti-circulation plan, and other small programs. But it expanded the largest agricultural subsidy program - crop insurance - and added two new subsidy programs, agricultural risk underwriting (ARC) program and price loss compensation (PLC) program. All of these subsidies ensure that agricultural income is much higher than that of most Americans. Farm planning is rich happiness, they lead to overproduction, raising land prices and harming the environment. They should be abolished and farmers should feed themselves in the market