Currently browsing posts about: Farm-bill

Is anyone else as upset as I am about the Debt Limit bill just passed by the House and Senate and signed by the President?

Senator Bernie Sanders, maybe.  Here’s why he voted against it.

Yes, the bill:

• Averted a default on the debt which everyone agrees would have been catastrophic (but the crisis should have been prevented in the first place)
• Will probably not cut SNAP benefits by much if at all (if you believe the Congressional Budget Office)
• Could have been a lot worse (a very low bar)
• Is considered a big win by the White House (oh dear)

But, and it’s a big but:

• It proved that bullying works.

The bullies know it, and are exulting.

The Farm Bill is next.  Watch what the bullies do to it.

What ever happened to government of the people, by the people, for the people?

Existential angst, anyone?  I’ve got plenty.

I’m just getting to this report from Food and Water Watch: The Economic Cost of Food Monopolies: Dirty Dairy Racket

Food & Water Watch took a look at what’s happening to the U.S. dairy industry.  Its conclusions are not surprising if you have been following these trends.

• Big dairies have driven out small.  Only about 30 percent of all U.S. milk is produced on family-scale farms.
• Dairy is not profitable.  “Thanks to the gutting of federal supply management policy,” overproduction and increased production costs gave caysed milk prices to plummet.
• Consolidation doesn’t help.  Three dairy coops control 83 percent of milk sales: DFA (Dairy Farmers of America), Land O’ Lakes, and California Dairies, Inc.).

Here’s one comparison: Dairy association CEP salaries as compared to dairy farmer income.

The next Farm Bill could help fix some of this by:

• Restoring supply management
• Stopping proliferation of factory dairy farms
• Reforming the farm safety net
• Setting fair prices

If you want to understand why it is politically impossible to transform the Farm Bill into legislation that promotes health, sustainability, and regenerative farming, take a look at the Environmental Working Group’s  Website and Farm Subsidy Database.

This reveals that eight members of the House Agriculture Committee,received over $14 million in federal farm subsidies between 1995 and 2021.

The eight: Reps. James Baird (R-Ind.), Jim Costa (D-Calif.), Doug LaMalfa (R-Calif.), Frank Lucas (R-Okla.), Tracey Mann (R-Ks.), Mary Miller (R-Ill.), John Rose (R-Tenn.), and Austin Scott (R-Ga.)

This is a clear conflict of interest.

Are these agriculture committee members likely to put a stop to inappropriate subsidies?  Doubtful.  They ought to be taken off the Agriculture Committee immediately.

Note: the size of the subsidy doesn’t matter.  Even small subsidies exert influence.

EWG also says that lawmakers who received commodity subsidies are also likely to be getting crop insurance subsidies.

But because those subsidies are not disclosed to the public, it’s not possible to determine whether some legislators are double dipping this way.

The EWG provides a list of all current members of Congress and family members who get farm subsidies here.

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Today, Congressman Earl Blumenauer (D-OR) is introducing the Food and Farm Act of 2023.  A summary of the bill is here.

This legislation is a comprehensive, alternative Farm Bill that advances four principles of agricultural reform:

(1) focusing resources on those who need it most;

(2) fostering innovation;

(3) encouraging investments in people and the planet; and

(4) ensuring access to healthy foods.

His bill has much to recommend it.  I gave it a blurb:

It’s great that Congressman Blumenauer wants to “shift the Farm Bill.”  The current Farm Bill focuses on producing feed for animals and fuel for cars.  It’s time to transform it to support policies that promote food for people and sustainable production practices.  Blumenauer’s Bill is a great step in that direction and is worth all our support.”

I also like Senator Cory Booker’s analysis.  He tweeted:

Right now, our dietary guidelines tell us that 50% of the food we eat should be fruits and vegetables – but less than 10% of our Farm Bill subsidies currently go to fruits and vegetables. The 2023 Farm bill will be an important opportunity to change this.

He explains all this in a 30-second video.

The National Sustainable Agriculture Coalition also has a video (4-minutes) as part of its primer on the Farm Bill.

Farm Bill Basics

1. WHAT DOES THE FARM BILL COVER?
2. WHO IN CONGRESS WRITES THE FARM BILL?
3. WHAT ISN’T IN THE FARM BILL?
4. HOW MUCH DOES THE FARM BILL COST?
5. HOW DOES THE FARM BILL PROCESS WORK?
6. FARM BILL WEBINARS

Its pie chart explains the politics .

The Farm Bill is a shotgun wedding between supports for Big Agriculture and SNAP—the green three-quarters of the pie.  There aren’t enough votes to do either, so President Johnson’s brilliant logroll is still necessary.

Republicans want spending on nutrition to decline, and fast, and are insisting on work requirements which, if passed, would undoubtedly decrease rolls (and greatly increase poverty).

We are still at the beginning of this Farm Bill round.  Stay tuned.

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Everyfive years or so, Congress gets to work on a new Farm Bill.  This is a big job.

I’ve written about the Farm Bill previously.  See, for example, my opinion piece in Politico: “The Farm Bill drove me insane.”

Here are two recent publications to get you started.

The Congressional Research Service has a handy guide with summaries of its full collection of primers for the a 2018 bill.

There are 23 primers summarized in this report and organized under descriptive headings rather than by farm bill titles to facilitate accessibility for those who are not familiar with the 2018 farm bill. The concept behind these primers is to provide relevant information on key programs and policy initiatives authorized by the 2018 farm bill in a concise format that serves as a quick-reference resource for Members of Congress and congressional staff. To this end, the primers describe many of the leading programs and policies within the 2018 farm bill. They also identify some of the higher-profile policy issues that may arise as Congress engages in the process of writing a new farm bill and highlight some policy options that Congress could consider as it undertakes this task. The titles of the primers are hyperlinked for easy access.

The National Sustainable Agriculture Coalition has a statement of principles for congressional reform of the bill.

US food and agriculture policies are in need of reform. Some of the country’s largest agricultural operations receive unlimited subsidies while beginning farmers struggle to afford land. Crop prices recently rose to record highs, but challenging input costs – for everything from fuel to fertilizer – are eating away at profits. Food supply and inflation challenges continue to make headlines. Meanwhile, children go to bed hungry while one-third of food is wasted.

Comment: Here’s one reason why:

Reforming the Farm Bill is badly needed but won’t be easy for reasons of history and politics.  Getting it passed is expected to be exceptionally difficult for the same reasons.  80% or so of its spending is for SNAP—the Supplemental Nutrition Assistance Program (SNAP).  The rest goes largely to producers of feed for animals and fuel for automobiles.  How’s that for vested interests!

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When it comes to analyses of agricultural policies, some of the most critical come from conservatives.

From the American Enterprise Institute: Farm Subsidies and the Poor (2022). The key points:

• Despite claims to the contrary, farm subsidies do little to reduce food prices and almost nothing to alleviate rural poverty.
• Payments of farm subsidies are roughly proportional to farm output; therefore, those who operate small farms receive minimal benefits from such programs.
• Other US Department of Agriculture policies that provide low-income households with subsidies to buy food do increase food security and reduce poverty.

An earlier report from the American Enterprise Institute:  Agricultural subsidies aid the wealthy, not those in rural poverty (2017)

Taken together, these programs cost about $20 billion every year…Who gets all that federal money? About 70 percent of all crop insurance and other farm income safety net payments flow to 10 percent of the largest crop-producing farm businesses. This group comprises less than 100,000 farm operations, each of which on average receives more than $140,000 every year…In contrast, 10 percent of the smallest farms receive a mere pittance, on average no more than about $50 — from the federal crop insurance and safety net programs. And the bottom 80 percent, including midsize farms, receive less than 10 percent of all subsidy payments.

From the Cato Institute: Examining America’s Farm Subsidy Problem (2020)

This year, farmers (on net) will derive almost 40 percent of their income directly from the U.S. government. Forty percent.

Comment: The main effect of agricultural subsidies is to encourage Big Ag to grow commodity crops in places where they should not be grown.  Clearly, ag policies need rethinking.  How about revising them to support production of real food, rather than feed for animals and fuel for cars?  How about redesigning ag policy to refocus it on health and sustainability?  These reports suggest that plenty of bipartisan support is available.  Let’s tap into it for the next farm bill.

I was interested to see this graph in a recent report, USDA Agricultural Projections to 2031.

What this says is that agricultural imports are soon expected to be greater than agricultural exports.

Within the next year or so, the United States will be a net importer of agricultural products.

As the report puts it:

Agricultural exports are expected to grow at an annual rate averaging 0.8 percent per year from 2021 through 2031. The value of U.S. agricultural imports is projected to increase by an average annual rate of 6 percent over that same period as domestic consumer spending is expected to remain strong over the next decade combined with domestic preferences for an array of agricultural goods that continue
to exceed domestic production.

I think we need to ask what this means for long-term food security in this country.

The next Farm Bill is under discussion.  It ought to deal with the question of how US agriculture can produce more food for people rather than feed for animals and fuel to cars.

I keep remembering a meeting I went to in Washington DC years ago, where a USDA official said that he did not think Americans should waste land for growing food when it could be done so much more cheaply elsewhere.   I hope USDA thinks differently now.

I’m trying to figure out how much money—over and above what’s appropriated through the farm bill—is going to Big Ag.  I wish someone would add it up for me.

Here’s what I know so far:

The USDA has given producers more than $10 billion in Coronavirus assistance.  This includes nearly $1 billion to Iowa farmers.  Lesser amounts went to producers in Nebraska, California, Texas, Minnesota and Wisconsin.  Overall, about half went to livestock producers.

According to the Environmental Working Group,

The largest and wealthiest U.S. farm businesses received the biggest share of almost $33 billion in payments from two subsidy programs – one created by the Trump administration to respond to the president’s trade war and the other by Congress in response to the coronavirus pandemic.  The Market Facilitation Program, or MFP, was intended to offset the perceived damage done by the administration’s trade war, which reduced many farmers’ access to lucrative Chinese markets. Payments for the 2018 and 2019 crop years were just over $23 billion – more than $8.5 billion for 2018 and $14.5 billion for 2019.

Chuck Abbott of the Food and Environment Reporting Network (FERN) says:

With its new offer of $14 billion in coronavirus relief, the Trump administration could spend $50 billion — quadruple the cost of the auto industry bailout — in less than three years to buffer the impact of trade war and pandemic on agriculture. Farm groups welcomed the second round of coronavirus assistance while critics said it was “old-fashioned vote-buying” ahead of the Nov. 3 presidential election.

And the largesse does not stop.  The House has proposed a $120 billion rescue fund that includes relief programs for livestock and dairy farmers and food processors, such as “$1.25 billion to assist contract growers of poultry and livestock growers who face revenue losses due to reduced placements related to COVID-19”

This money goes to Big Ag—Soybeans, Corn, Meat—mainly in mid-West Trump country.

What about food for people?  Well, we have the $4 billion Farmers to Families food boxes, although how much of that goes to farmers as opposed to distributors is unknown.