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

Future Retirement Success

Investing

Rising Farm Incomes Underscore Need for Subsidy Cuts

by September 19, 2023
September 19, 2023
Rising Farm Incomes Underscore Need for Subsidy Cuts

Chris Edwards

As Congress considers a farm bill in coming months, it should keep in mind that farm household incomes have risen greatly over the decades. When farm programs were put in place in the 1930s, the “per person disposable income of farms was 39% of U.S. per person disposable income,” reported agricultural economist Carl Zulauf. Farmers had lower incomes than other Americans.

Today, farmers have substantially higher incomes than other Americans, according to U.S. Department of Agriculture data. The chart shows the ratio of the average income of farm households to the average income of all U.S. households. Farm incomes fluctuate from year to year, but the long‐​term trend is upwards.

In 1960, farm households earned 65 percent of the incomes of all U.S. households, on average, but by 2021 they were earning 32 percent more. In 2021, the average income of farm households was $135,281, which compared to the average for all U.S. households of $102,316.

Farm subsidies in the 1930s were a low‐​income safety net, but that justification for subsidies has disappeared with today’s more prosperous farmers. For this reason and others, Congress should begin cutting the $20 billion or more in annual taxpayer support for farm businesses.

For farm households, the USDA data include income earned on and off the farm. The share of farm household income earned off the farm increased from less than 40 percent in the 1930s, to 53 percent by 1960, to 77 percent by 2021. Today’s greater diversification of income sources is a market‐​based way of mitigating the risks of farming without government subsidies.

These data are overall averages, but there are many different types of farm business. The USDA data show that smaller farm operators tend to earn a larger share of household income off the farm and are less likely to receive subsidies. Larger farm operators tend to earn a smaller share of household income off the farm and are more likely to receive subsidies.

0
FacebookTwitterGoogle +Pinterest
previous post
The 2022-2023 Cato Supreme Court Review
next post
New Economic Freedom Report: Hong Kong Falls from Top Spot

You may also like

Immigration is Good, Just Like Trade

May 27, 2025

Biden Is Once Again Being “Generous” to Student...

July 31, 2023

State Medicaid Reform May Become Both Possible and...

November 22, 2024

British Columbia Should Legalize, Not Recriminalize, Drugs

June 18, 2024

Trump, Harris, and All the Wrong Ways to...

September 11, 2024

Does Section 3 of the Fourteenth Amendment Disqualify...

August 25, 2023

Friday Feature: The Grove Christian Co-Op

April 26, 2024

Trump Proposes to Socialize IVF

August 30, 2024

Will Economic Growth Be Short-Lived as Fiscal Challenges...

May 23, 2024

Fact-Check: Taxes on the Rich

March 7, 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

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • 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