Archive | 5:22 AM

Farm Subsidies Are Not Going to Farmers

13 Jun

Don’t worry, I’ll chime in at the end of this post.  But here’s the main issue from “Food Politics,” Marion Nestle’s blog:

Smith VH. Premium payments: why crop insurance costs too much. American Enterprise Institute, 2011.

Since 2007, government subsidies for crop insurance have averaged about $5.6 billion per year, representing over one-third of total expenditures on income transfers and other government payments for programs targeted directly to farmers.

However, about 58 percent of those expenditures have ended up in the hands of agricultural insurance companies and agricultural insurance agents.  In fact, since 2005, on average, the agricultural insurance industry has received $1.44 for every dollar farmers have received in crop insurance subsidies.

No wonder Big Ag wants crop insurance subsidies continued.  Will the 2012 farm bill fix this? I’m not optimistic but will stay tuned.

This is me talking now:  I don’t really understand the farm bill.  It sounds huge and confusing, and I don’t see how it does a lot of good.  I think it would be better to get rid of the entire thing.  Make smaller bills dealing with specific issues.  Give the public what they are asking for and pay attention to health.  I suppose doing it this way would anger a whole lotta good ‘ol boys, lobbiests, and corporations though.  It’s too bad money always has to take precedence over EVERYthing else.