Farmers Income Rises, but Subsidies Stay

  • 24/04/2008

  • New York Times (New York)

Americans are in sticker-shock over grocery prices, while people in developing countries are rioting over food shortages. And across the heartland, American farmers are enjoying record incomes, but losing sleep over rising expenses and turbulence in the commodity futures markets. Here on Capitol Hill, though, it is pretty much farm politics as usual. As Congress works toward final passage of the farm bill, it is poised to continue most of the existing farmer subsidy programs, including about $5.2 billion a year in so-called "direct payments' that will be disbursed even as net farm income is projected to hit a historic high in 2008. The farm bill, which comes along once every five years and will cost upward of $300 billion, in fact will do little to address many of the most pressing concerns. It will not change biofuel mandates that are directing more corn to ethanol and contributing to a global rise in food prices. It will do little to ease worldwide food shortages. And at a time of high volatility in the futures markets, it will not require tougher regulation. In other words, Congress seems oblivious. And longstanding critics of American policy are piling on. "It really is astounding,' said Representative Ron Kind, Democrat of Wisconsin, who has pushed for broad changes in farm subsidy programs. "It's as if this farm bill is being negotiated in a vacuum.' Ken Cook, president of the Environmental Working Group, which maintains a database showing how farm subsidies mostly benefit a small number of wealthy producers, blamed Congressional leaders outside the agriculture committees. "There really doesn't seem to be any intervention that reflects these broader crises,' Mr. Cook said. "They are sound asleep at the leadership level.' The White House, too, has joined the criticism, sharply criticizing Congress for proposing to spend $16 billion more than was initially allocated for the farm bill