Farming the government

In prior posts I have described myself as a transplanted midwesterner (a North Dakotan, to be exact), and while I did not grow up on (or really near) a farm, many of my friends did, and I did quite a bit of agricultural law while clerking for a judge there. Prior posts have also shown me to be something of a free trader (see especially the posts to The Economist. So I was fascinated to read this report, which shows that American farmers received $114 billion in direct transfer payments between 1995 and 2002.

Other statistical highlights for the year 2002 include:

Iowa received the most of any state (10 billion); Rhode Island the least (a modest 3 billion)*

The top 10 percent collected 65% of total subsidies ($7.8 billion); it was 55% in 1995.

Quite a few wealthy celebities were among the recipients.

The largest single recipient in 2002 was Riceland Foods, Inc, of Stuttgart, AZ, which received over $110 million in commodity subsidies (and zero for conservation or disaster relief).

And these are only direct subsidies, mind you, not indirect subsidies such as high tariffs on imported agricultural products (such as Brazilian sugar or African cotton).

Now, I don't claim to know the solution to the farming problems, and it must be said that many American farmers do struggle. But these massive subsidies - matched if not exceeded by our friends at the EU and even defended by such odious characters as French anti-globalization gadfly Jose Bove - are indefensible from those who wish for free trade (even the Post attacks them). They are the main topic of discussion at the ongoing Doha round of trade talks in Cancun, Mexico, although I doubt seriously that eith the US or the EU will be able to give them up. It's a pity, because talking tough on free markets and open trade is meaningless if it is matched by such blatant protectionism (and because it has forced me to agree with the Post's editorial page).

* North Dakota is in 8th place with over 5 billion, which is remarkable considering there are only about 550,000 people there (it's a great place for those who like a little elbow room).
- posted by Anonymous @ 9:51 PM