Federal Spending & The Budget

Farmers Reveling In New Freedom

With few exceptions, farmers across the country are celebrating their freedom of choice to plant what they want, wherever they want -- unencumbered by Agriculture Department controls for the first time since the Roosevelt administration.

The 1996 Federal Agricultural Improvement and Reform Act -- or Freedom to Farm Act, as it is more widely known -- ended half a century of complex, rigid and arbitrary rules telling farmers how to use their land in exchange for subsidies.

  • The federal government paid farmers an average of $5.5 billion a year in crop subsidies between 1990 and 1996.

  • They will continue to get $30 billion in "transition payments" through 2002 -- but these are no longer linked to what is planted in the field.

  • Responding, to favorable prices, good weather and high export expectations, farmers have planted their largest crops since the 1980s.

  • Commodity prices hit historic highs last year and farm exports reached nearly $60 billion.

In 1973, American farm productivity was 34 percent higher than average farm productivity in the European Union. But by 1993 it was 42 percent higher -- reflecting, experts say, the less paternalistic government practices in the U.S.

Source: "The Farm Belt Breaks Free," Economist, July 12, 1997.


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