Salt Lake Tribune
Weekly Ad Specials
Subsidy figures get blasted at U.S. farmer convention
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Subsidies to U.S. farmers are paid with no logic: Payments are small or nonexistent during droughts or other hard times but large when harvests are bountiful.

That assessment came from U.S. Agriculture Secretary Mike Johanns during the closing day of the American Farm Bureau Federation convention at the Salt Palace.

"Farmers want to work for a profit," said Johanns. "They don't want to farm for the government."

About 54 percent of government payments go to operations making $250,000 or more annually, said Johanns - but those large operations make up less than 15 percent of U.S. farms.

The vast majority of U.S. farms average much less than $250,000. In fact, most farmers rely on second jobs to supplement their income, according to the U.S. Department of Agriculture.

"There's got to be better ways for equal distribution," he said.

Johanns said government payments will be more equitable in the 2007 farm bill, but he did not give details.

ABC correspondent Sam Donaldson was more blunt.

"Subsidies will be cut," he told reporters after his keynote address. "The only question is by how much."

Current farm legislation is contained in the 2002 farm bill, which is set to expire in September. Shortly before the 2002 measure was adopted, a record $32 billion was paid in farm subsidies, said Johanns, “and yet, the farm economy was far from impressive."

Now, government payments have dropped to about $20 billion annually "and yet our agriculture economy is far stronger,” he added.

Johanns cited improved agricultural exports, reduced average debt-to-income ratios, improved crop production and yield, and higher farm cash receipts as factors that have come into play since the 2002 farm bill went into effect.

“This suggests that increased subsidies do not equate to a strong ag economy,” Johanns said. “We've never been in a better position to develop a program that lets farmers work for a profit in the marketplace, not an envelope from Washington.”

dawn@sltrib.com

Article Tools

 
Affiliates and Partners