Farm subsidies: Where the money goes | IN 60 SECONDS

Farm subsidies: Where the money goes | IN 60 SECONDS


Farm safety net programs were
established to protect agricultural producers against production, price, and
income risks. But payments for major federal programs like agricultural risk
coverage, price loss coverage, and crop insurance overwhelmingly go to the
wealthiest and largest farms. The top 10% of farms by total crop sales, which have
an average net worth of 5.5 million, received $55,000 in payments per farm in
2015, totaling almost $3 billion, or nearly
two-thirds of all program payments. The other 90% of farms received just four
thousand dollars on average. Two recent proposals attempt to limit the
concentration in subsidies. A $40,000 cap on crop insurance subsidies would save
an estimated two billion dollars per year, while $125,000 cap on per-farm subsidies across all programs, would save $670 million per year. Nearly all of
these savings come from a reduction in payments to the largest 5% of farms, who
are the least vulnerable to adverse market conditions. In order for these
programs to provide an effective safety net, they need to be targeted at the most
vulnerable. So what do you think the farm safety net program should look like in
the United States? Let us know in your comments. Also, let us know what other
topics you’d like our scholars to cover in 60 seconds, and be sure to LIKE and
subscribe for more research and videos from AEI.

10 thoughts on “Farm subsidies: Where the money goes | IN 60 SECONDS

  • Everybody, including farmers, hate subsidies. Here is why they are necessary. https://www.youtube.com/watch?v=LVWBc30FEsk

  • Oy! Big farms shouldn't be getting these large subsidies. It should be for the smaller ranches/farmers. Seriously!

    When Winter Storm Atlas hit, it wiped out whole herds. Farmers lost every single animal. Imagine it, 300-600 or more. Depending upon the location and number of animals you had. It was heartbreaking to see. I lived there, in the heart of where Atlas hit. 6 days without heat, 3 days without flowing water. (Thankfully I had water stored) All but 1 house plant died, surprisingly none of my ball pythons died. Atlas was horrific.

    Now that we're on the family farm, I fear having a storm like Atlas roll through. We're a small ranch. 4,500 acres. 300 cows with calves & 6 bulls. Plus crops.

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *