FARM BILL SHOULD BE PLOWED UNDER
Mickey Hepner
The Edmond Sun
EDMOND — It now appears that Congress is ready to move forward on a new farm bill soon. Unfortunately, this final bill is indicative of all that is wrong with Washington.
House and Senate negotiators reached an agreement last week on a new farm bill that will spend $300 billion during the next five years.
Admittedly, there is much to like in this bill. For example, the bill will increase food stamp benefits in an effort to help low-income families cope with soaring food prices. The Center on Budget and Policy Priorities estimates that 157,000 Oklahomans will benefit from this expansion. Furthermore, the measure includes more funding for the fresh fruits and vegetables programs for schools, as well as additional funding for conservation programs to protect the environment.
The problem is that in order to enact these programs that have broad, bipartisan support, Congress also must agree to give away billions in farm subsidies that mainly benefit millionaire farmers, corporations and even some members of Congress.
Under the provisions of the bill, farmers who grow wheat, cotton, soybeans, corn and rice will pocket more than $5 billion annually in crop subsidies. Incredibly, married couples earning up to $1.5 million still will be able to receive these farm subsidies. In other words, middle class families are paying taxes to help subsidize these millionaire farmers.
When we are running a $400 billion budget deficit, when we have 47 million Americans without health insurance (including 9 million children), when middle-class families have seen their incomes fall in the last year while gas prices are rising, the idea that we should be subsidizing millionaires frankly is appalling.
Now, the farm lobby argues that these subsidies help decrease food prices, thereby making food more affordable. However, Economics 101 tells us otherwise. First, we must remember that the true price of our food includes not just the price we pay at the grocery counter, but also the subsidies taxpayers provide. Since farmers are receiving more revenue with these subsidies (otherwise they would not support the policy), it must be the case that we are paying more to those farmers. Essentially, farm subsidies mean we have to pay more for food.
Furthermore, by subsidizing only certain crops, we are discouraging farmers from growing other types of crops. With less supply, the prices of these other crops necessarily rise, too. Again, consumers are stuck with high food prices.
In the coming weeks, Congress will vote on whether to approve this bloated bill. Undoubtedly, the increased funding for nutrition and conservation programs will entice many to support the measure. However, there is another choice — Congress could start all over and remove the wasteful spending. The only way to get that to happen is for Congress to vote against the bill now.
Everyone except perhaps some career politicians knows that all wasteful government spending is bad, and everyone except the farm lobby knows that subsidizing millionaires instead of helping our families is a pretty wasteful use of taxpayer funds. By encouraging Congress to oppose this bill we can send those career politicians a message that we will not tolerate their wastefulness any longer.
MICKEY HEPNER is an associate professor of economics at the University of Central Oklahoma.
On Tuesday, 