WHO RECEIVES AGRICULTURAL SUBSIDIES?

Agricultural subsidies are government payments to farmers who cultivate their land to produce crops. These payments are made because
farmers often experience unforeseen circumstances, such as adverse weather or an infestation of pests. Agricultural subsidies are
intended to provide economic stability to protect farmers against these unforeseeable circumstances, however that has not always proved
to be the case. According to the Environmental Working Group, "from 1995-2009 the largest and wealthiest top 10% of farmers received
74% of all agricultural subsides" (White par. 11). Although these subsidies were intended to benefit the average farmer, this statistic is
evidence that the beneficiaries of agricultural subsidies are often wealthy, leaving the average farmer with little to no payment.

AGRIBUSINESSES

FARMERS

Agribusiness is the business of agricultural production. It

includes agrichemicals, breeding, crop production (farming and
contract farming), distribution, farm machinery, processing, and
seed supply, as well as marketing and retail sales. Some equate
agribusiness to corporate farming, which is a business aimed solely
at producing crops for profit. According to Dayen, "referring to

According to the Imhoff, a farm is "any place from which $1,000

or more of agricultural products were produced and sold, or
normally would have been sold, during the year" (Imhoff par. 2).
This low set standard makes it possible for a large number of
people to be classified as "farmers" by the USDA, even though they
may only be producing for themselves.

beneficiaries as 'farmers' underplays how giant agribusinesses

really benefit from subsidized crop insurance. There have
traditionally been no limits to premium support, meaning the
richest businesses reap the most benefits" (Dayen par. 4). The
richest famers are often in the business of producing crops and
have specialized techniques to maximize output and therefore
profit.
Some argue that agribusiness receive a larger portion because of
this specialization, while small farmers do not because they
generally only produce for themselves (Imhoff par. 4). According to
Imhoff, the USDA has low standards for qualifying to be a farmer.
This causes it to appear as if most farmers do not receive subsidies,
when it reality it could be because of the low standard set by the
USDA (Imhoff par. 3). Companies, such as Monsanto, are receiving
a large portion of the ag. subsidies because they are producing a
much larger quantity of crops than the small-independent farmers.
While this may seem unfair to many, it all comes down to
production. According to Imhoff, "just a fractionaround 15
percentof all farms generate most of the agricultural output,
primarily because they have specialized in commodity crops"
(Imhoff par. 3).
The Farm Bill was intended to help the small family owned farms,
but it has actually led to a reduction in small farms. This has

Reasons to support Agricultural Subsidies to Small Farmers:

Saving the family farm
The United States has been increasingly moving towards the
"bigger is better" mentality. This holds true for the size of the
federal government, which has been increasing in size since the
1930's. It also holds true for industry, which has moved away from
the small business mentality to the big business idea. With this in
mind, think about what the "bigger is better" mentality does to
small family owned farms. Not only do big businesses
(agribusiness) undercut the small farm, they also undercut the local
economy where the family farm is located. Small farms provide
economic incentives to their local economies by providing local
grown produce, helping create businesses that are involved in
agricultural process, and by establishing a brand for the
community. If there were no small farms, dozens of local
communities would lose their income source and jobs.
Cheap food supply
Small farmers often sell directly to people in and around their
community at local Farmers Markets. This is very beneficial to
those who are interested in knowing where their food comes from
and how it was produced. Because these small farmers sell locally,

occurred because smaller farms do not receive the subsidies they

need to be profitable coupled with the fact that they cannot
produce enough to keep up with mega-farms. Those who do rely on
farming as their main source of income are struggling to pay for the
high price of seed, which Monsanto sells. They are also struggling
to pay for the increased prices of fuel and equipment needed to
farm their land.

they are supporting their local economy and community. Big

businesses are not involved in this process and often only sell to
other big businesses (Walmart, FoodLion, Harris Teeter). By selling
locally farmers can meet the needs of their community. They are
also able to charge a lower price for their crops because they do
not have to transport their crops long distances.
Maintain the Environment
Small farmers contribute to the overall well-being of the
environment by ensuring they use safe practices. Big businesses
are solely interested in reaping large profits and often ignore the
well-being of the environment. Because they operate large
businesses they use more energy, more fertilizer, and emit more
gases. This is harmful to the environment and potentially
dangerous to human health. While this can be debated, it is
certainly worth mentioning. Also, small farmers live in the areas
they farm. This means that they use the resources around them
and don't want them to be contaminated. Big businesses do not
have any connection to the land and are only using it to make a
profit. Because of this, they are not as concerned with the
environment because they are not directly using it.

n.a. "GMO Science, Sources, and Relationships". GMO Awareness. n.d. Web. 24
November 2014.

Sources:
Dayen, David. "The Farm Bill Still Gives Wads of Cash to Agribusiness. It's Just Sneakier About It" New Republic. 4 February 2014. Web. 22
September 2014.
Imhoff, Daniel. "Overhauling the Farm Bill: The Real Beneficiaries of Subsidies." The Atlantic. 21 March 2012. Web. 22 September 2014.
n.a. "GMO Science, Sources, and Relationships". GMO Awareness. n.d. Web. 24 November 2014.
White, Deborah. "What Are U.S. Farm Subsidies?" About News. n.d. Web. 22 September 2014.

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