USA - Do Farm Subsidies Reduce Rural Poverty?

24.01.2017 104 views
Rural voters played an important role in the last election. As the Senate considers a new Secretary of Agriculture and Congress begins work on a new Farm Bill, it’s important to consider the effect that food and farm policy has on rural communities, especially those that are impoverished. Farm lobbyists frequently insist that farm subsidies are critically important to supporting the rural economy. “It's not so much a safety net for farmers as it keeps rural America alive,” said one proponent of corn subsidies. “Agriculture forms the lifeblood of many rural communities,” according to an advocate for cotton farmers. So, according to the logic of these farm lobbyists, farm subsidies are “crucial to the economic security of rural America.” Even modest cuts to subsidies for “Cadillac” crop insurance policies would “[hit] rural America where it hurts most,” according to Senate Agriculture Committee Chairman Pat Roberts. The truth is that farm subsidies play little role in reducing rural poverty. That’s according to a paper by three leading agriculture economists commissioned by the American Enterprise Institute, or AEI. It confirms the findings of a 2013 paper by other leading economists. Here’s why. Farm subsidies overwhelmingly flow to the largest producers of bulk commodities, so “these benefits are mainly distributed to large commercial-sized farms,” wrote the authors the of AEI-sponsored paper. According to EWG’s Farm Subsidy Database, 77 percent of farm subsidies paid between 1995 and 2014 flowed to the largest 10 percent of subsidy recipients. The top 1 percent of subsidy recipients received 26 percent of all payments. As a result, roughly 30,000 very large farm businesses have received more than $46 billion in subsidy payments – or $1.57 million per farm – over the last two decades. While some very large operations receive more than $1 million annually in subsidies, the bottom 80 percent of subsidy recipients annually collect less than $10,000. “While farm subsidies transfer income from taxpayers to farm owners, most of the direct beneficiaries are relatively wealthy,” the economists concluded. The median wealth of the nation’s 50,000 largest commercial farms is $6.9 million, according to the USDA’s Economic Research Service. What’s more, many subsidies also flow to urban residents, not farmers – including the Trump administration’s nominee for Secretary of Agriculture, former Georgia Gov. Sonny Perdue. According to EWG’s Farm Subsidy Database, between 1995 and 2004 Purdue collected $278,000 in farm subsidies, even though he is not a farmer. Purdue owns farms – which he leases to farmers – and ran businesses that sell fertilizer and store grain. But EWG could find no evidence that Purdue has been a farmer since he left his family’s farm for college more than 50 years ago. Thousands of city slickers like Purdue continue to collect farm subsidies. But these are not the only reasons why subsidies do not reduce rural poverty. Farming accounts for only 6 percent of employment in non-metropolitan counties – employing far fewer people than transportation, utilities, manufacturing and services. “Farm income and employment are small shares of the rural economy almost everywhere in the United States,” according to the AEI experts. “Even with multiplier impacts that affect nonfarm employment and income opportunities, farm subsidies do little for rural poverty.” Farm workers, rural residents, and others in farm-related occupations receive little additional income from farm programs, the experts wrote. Despite warnings of a “farm crisis,” farm household income is still growing – even as the price of some bulk commodities return to normal. The USDA projects that median farm household income is $20,000 higher than that of non-farm households. Large and very large commercial farms reported median household incomes of $340,000 and $1.1 million, respectively, in 2015. Most farm households do not face the risk of poverty, according to the new AEI paper: “If the goal is to reduce poverty in the United States, focusing on farm operator households is unlikely to have much impact.” Many of the counties that receive the most subsidies are also among the counties with the nation’s highest levels of poverty and diet-related disease. Moreover, farm workers, who earn about $9 an hour, tend to pick fruit and vegetable crops that do not benefit from the lion’s share of farm subsidies. So do farm subsidies reduce rural poverty? According to the experts, the USDA does “many things to promote rural development,” such as offer loans to upgrade wastewater utilities, “but the agriculture subsidy programs are not central to that effort.” The reason why is clear: Most subsidies flow to the largest and most successful farm businesses, and have little impact on the rest of the rural economy. Source - http://www.ewg.org
23.04.2024

Czech Republic - Return of cold weather impacts crops

In Czechia, a rapid transition from mid-20s Celsius to sub-zero temperatures has significant implications for agriculture, particularly affecting early-blooming and growing crops. Miroslav Havránek, from the Charles University Environment Centre, highlights the broader consequence as a potential reduction in crop yields.

23.04.2024

UK - Weather will impact agriculture more and more

The 2023 weather conditions in Lincolnshire, UK, significantly impacted Andrew Branton's farm, leading to an unharvestable potato crop due to excessive rainfall. Approximately a year's worth of rain from late September to January submerged many fields, rendering the soil too wet and compacted for sowing spring crops.

23.04.2024

Syria - Wild animals ravaging crops in western Daraa

Farmers in the western countryside of Daraa suffer from the frequent encroachment of wild animals on their vegetable and fruit crops, as these animals eat the fruits and cause damage to agricultural produce.

23.04.2024

USA - Leading New Hampshire agriculture toward climate resilience

Agriculture sustains our very existence. Despite the misconception that large farms feed the world, it’s small-holding farmers who predominantly nourish us, while consistently outperforming their larger counterparts in yields and ecological sustainability.

23.04.2024

Philippines - Extreme drought hits Cebu City

He is giving out his tomatoes for free but not because of the abundance in harvest. He is Emelio Secretaria, a farmer who owns four hectares of farmland nestled in Barangay Sudlon 2, Cebu City. The drought due to El Niño did not exempt him from experiencing the worst.

23.04.2024

India - Karnataka Minister hopes for early release of funds by Centre for drought relief

On Karnataka State's plea in the Supreme Court seeking financial assistance for drought relief, Karnataka minister Krishna Byre Gowda said that the Government of India has agreed to take a decision within this week.

23.04.2024

Bangladesh - Heatwave threatens mango-litchi yields, drastic crop loss feared

From expansive mango orchards to small family farms, reports indicate a significant decline in fruit budding compared to previous years, sparking fears of a collapse in mango and litchi yields.

23.04.2024

Philippines - Maguindanao Sur under state of calamity as crop losses reach P345M

Maguindanao del Sur Governor Bai Mariam Sangki-Mangudadatu has approved a resolution declaring the entire province a state of calamity due to huge agricultural losses brought about by drought.  

istanbul escort şişli escort tbilisi escort şişli escort şişli escort maslak escort istanbul escort beşiktaş escort taksim escort izmir escort ümraniye escort mecidiyeköy escort şişli escort taksim escort ümraniye escort kartal escort şirinevler escort maltepe escort istanbul escort ümraniye escort kadıköy escort vip escort mersin escort istanbul escorts ataköy escort avcılar escort beylikdüzü escort okmeydanı escort şişli escort tuzla escort işitme cihazı sex shop sex shop sex shop sex shop sex shop sex shop sex shop sex shop