Introduction
The farm bill effects our lives in many ways, from what we eat, the success of our neighbor’s farm, to international trade. The first Farm Bill was enacted 1934 during the depression. It was designed to control farming by preventing over production that leads to price collapse. This is done by subsidizing farmers, creating quotas and fixing commodity prices. An examples of this is the import tariffs on sugar that keep the price of sugar high in the United States. This protects the sugar produces domestically but can negatively affect industries that use sugar and international producers that want to sell their product. This impacts us individually by the bakers and confectioners that make the breads and sweets we eat have to pay a higher price for sugar than if was traded freely. According to Please Explain: The Farm Bill, The sugar programs costs the consumer about 4 million dollars per year.
These cost signals can caused some industries to switch from using sugar to high fructose corn syrup. This can have health impacts and is economically inefficient. This specific example is controversial and complicated but shows the negative or positive feedback loops (depending on your affiliations) that are created to support the production of cheap corn which is another highly subsidized crop.
Direct Payment and Crop Insurance
Crop insurance provides a safety net for farmers who qualify (primarily commodity crop producers). According to Please Explain; 85 percent of farmers are enrolled. It insures against: drop in revenue and drop in yields. The Government subsidizes 62 % of the premiums. Direct Payment a payment that was made to farmers and landowners whose land had a history of production. This programs was created in the 1990’s and was only intended to be a temporary program. The program continued and was abused to the tune of 5 billion dollars a year. The new farm bill eliminates this program as well as combined 100 other. The funding for direct payment is likely to be used in the crop insurance program.
Food Stamps /Supplemental Nutritional Assistance Program (SNAP)/ Oregon Trail
The food stamp portion of the farm bill act is by far the most controversial. According to the Utopian Dream: A new farm bill, “The elephant in the farm bill—its biggest program by far and accounting for nearly 85 percent of the funding” A break down in all of the costs for the farm bill were also given, “In 2011, as a result of the declining economy and high unemployment, SNAP benefits grew to cover forty-six million Americans at a cost of $72 billion. In contrast, commodity subsidies cost “only” $8 billion; crop insurance $4.5 billion, and conservation about $5 billion.”
Argument
Why are food stamps attached do the farm bill? Or more accurately why is the farm bill attached to the food bill? Yes, I see the obvious connection between food and farmers but in today’s complex economy these two entities are worlds apart and should managed separately. Farmers aren’t selling directly to the public. Therefore, helping the farmer doesn’t directly help the people who require assistance from SNAP. We have created a food system that required middle people to facilitate market activities. Therefor the activities of farmers and consumers are unfortunately separate. The problem with the farm bill is you are asking social program agree with an agricultural program. The stakeholders are different and don’t have the same needs. There is no common ground and these two issues need to be managed separately. Bipartisan cooperation is possible but the scope of the legislature needs to be decreased and focused on specific issues. Concessions are made by both sides that ultimately hurt the public. If liberals want to increase funding for food stamps why should there be a conservative advance in farm subsidies? Bipartisan negotiation is normally conducted in this way, both sides get what they want but also lose ground in other areas.
Solution
A solution to this is to have farm bill managed as an agricultural bill and food stamps managed as a social program. Both are large enough to constitute separate bills. The numbers given from the Utopian dream article stated that 72 billion went to food stamps and 18 billion agricultural subsidies. Both of these issues demand bipartisan timely bipartisan cooperation. If we want bills to pass they must be simplified.
http://www.wnyc.org/story/please-explain-farm-bill/