NCPA


Policy Issues

NCPA Publications

Both Sides

Editorial Opinions

Audio/Visual


NATIONAL CENTER FOR POLICY ANALYSIS
HOME / SUPPORT US / ONE LEVEL UP / ABOUT NCPA / CONTACT US
USDA Recommends Cutting Farm Subsidies

Daily Policy Digest

Federal Spending And The Budget Issues

Thursday, September 20, 2001

Farm subsidies to big grain and cotton farmers are costing too much, according to a new report from the U.S. Department of Agriculture. The report says the government should spend more on conservation, food safety and other programs that provide broader benefits to the country.

  • The report says federal farm subsidies are causing "unintended (and unwanted) consequences" by encouraging overproduction of crops and driving up land rents, raising farm costs.
  • The report also said the 175,000 largest farms, which produce most of the nation's food, have household incomes that average more than $135,000.
  • Farm subsidies have soared to record levels during the past three years, and a proposed House farm bill would cost taxpayers about $170 billion over the next 10 years to maintain payments near to current levels.
While crop subsidies accounted for a substantial portion of the $55.7 billion in net cash income from farming earned by farm households in 1999, off-farm sources contributed $124 billion, notes the report, in part because for many small farmers (who receive a smaller share of the subsidies than the largest farms), farming is supplemented by work elsewhere.

Source: Associated Press, "USDA Releases Report Supporting Farm Subsidy Cuts," Washington Post, September 20, 2001; Scott Kilman, "White House Seeks to Cut Back On High-Cost Farm Programs," Wall Street Journal, September 20, 2001; based on "Food and Agriculture Policy: Taking Stock for the New Century," U.S. Department of Agriculture, September 2001.

For WSJ
http://online.wsj.com/articles/
SB1000937357666840800.htm

For USDA report
http://www.usda.gov/news/pubs/
farmpolicy01/fpindex.htm

For more on Agriculture Policies
http://www.ncpa.org/pd/budget/budget-7.html

12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
Copyright © 2001 National Center for Policy Analysis - All rights reserved.