Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Cutting Farm Subsidies

by August 10, 2023
August 10, 2023
Cutting Farm Subsidies

Chris Edwards

The bipartisan debt‐​ceiling deal passed in June reflected a new congressional focus on spending restraint. Congress should extend the restraint when it considers a major farm bill this fall. Cutting farm subsidies is a good way to tackle wasteful spending and reduce budget deficits.

Which farm programs should Congress cut?

The chart shows U.S. Department of Agriculture (USDA) outlays on farm programs based on fiscal‐​year data from President Biden’s budget. Figures for 2023 are estimates. The spending includes direct cash handouts to farmers and indirect support from programs such as agricultural research.

These are the main activities within each budget category.

Crop insurance. Subsidies for crop insurance premiums and insurance company administrative costs.
Farm Service Agency. Subsidies to boost farm incomes when revenues or prices are low.
Conservation. Payments to farmers to improve working lands or to take lands out of production.
Marketing. Marketing programs for farm products and the bizarre Section 32 that spends about $1 billion a year buying selected commodities.
Research. Salaries and benefits of USDA’s agricultural researchers.
Foreign Agricultural Service. Programs to boost farm exports and more than $1 billion a year in food aid to poor countries, which can undermine farmers in those countries.
Animal and Plant Health Inspection Service. Protecting animals and plants from pests and diseases.
National Institute of Food and Agriculture (NIFA). Extension activities and grants to outside researchers.
Food Safety and Inspection Service. Ensuring the safe production of meat and eggs.
Other. Support activities such as statistical analyses.

Total spending on these farm activities was $35 billion in 2022 and $48 billion in 2023. The other main items in USDA’s budget are food stamps, school lunches, WIC, rural subsidies, the Forest Service, and some disaster spending.

Some USDA farm spending is aimed at the broad public interest, such as food safety and animal and plant inspections. Research and some conservation activities may also create broad public benefits.

However, most USDA farm spending simply aims to boost the incomes of farmers and landowners, particularly those with large corn, soybean, wheat, rice, and cotton operations. This spending is misguided, and it should be cut to save more than $20 billion a year.

Crop insurance is a high priority cut, as discussed here. Another reform would be imposing much tighter income caps on all farm subsidies, thus ending welfare for the well‐​to‐​do. Other cut ideas are proposed by AEI, Heritage, TCS, and EWG.

Some members of Congress support cuts to the USDA’s food stamp program but defend farm subsidies, while others criticize corporate welfare but support aid to large farm businesses. Such hypocrisy needs to end if we are to get budget deficits under control. The food stamp program is vastly bloated and does not support healthy diets, while farm subsidies enrich high earners for no good reason.

How about a bipartisan compromise? Let’s cut both farm subsidies and food stamps in this year’s farm bill.

More on farm subsidies here. here, and here.

0
FacebookTwitterGoogle +Pinterest
previous post
Improve Your Entry Points
next post
Biden’s Student Loan Repayment Plan Poses Danger to Taxpayers

You may also like

Friday Feature: Redeemer Classical School

March 21, 2025

North Carolina’s Constitution Protects a Crucial Economic Liberty

May 1, 2024

Balancing Public Safety and Individual Freedom: A Doctor’s...

June 10, 2025

Record Student Visa Denials Before Trump: 41 Percent...

May 30, 2025

Unleashing Innovation in Light of U.S.-China Competition

August 25, 2023

Competitiveness of Protected US Shipyards Continues to Erode

January 15, 2025

Newsom Crying Wolf over Bird Flu

December 20, 2024

Curbing Federal Emergency Spending: New Study Release

January 9, 2024

King Biden Issues Another Decree

November 1, 2023

Futile ‘FEND OFF Fentanyl Act’ Might Fecklessly Fuel...

February 5, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • All-Time Highs and An Upcoming Rate Cut: We’re Just Getting Started on This Move Higher

      June 27, 2025
    • Trump celebrates Supreme Court limits on ‘colossal abuse of power’ by federal judges

      June 27, 2025
    • Second Amendment ‘setback’: Gun tax cuts stripped from Trump’s ‘big, beautiful bill’

      June 27, 2025
    • Don’t Give Big Businesses Immunity from Litigation

      June 27, 2025
    • Unmasking Medicaid Money-Laundering Schemes: Medicaid Financing Gimmicks 101

      June 27, 2025
    • Top moments from the Trump-Biden debate that changed the course of the 2024 election

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,077)
    • Politics (15,831)
    • Stocks (3,174)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved