Prince Gets Texas’ Biggest Farm Subsidy : $2.2 Million Granted on Holdings Larger Than Liechtenstein

The crown prince of Liechtenstein is a partner in a Texas farm larger than his own principality--and collects king-size subsidies from the U.S. government.

Subsidies of $2.2 million, the largest support payment to any farm in Texas this year, went to Farms of Texas Co., a $70-million farming partnership owned by Crown Prince Hans Adam of Liechtenstein and International Paper Co., headquartered in New York, according to the Agriculture Department.

Prince Hans Adam, the 41-year-old heir apparent to the throne, owns half of the partnership, which controls 50,000 acres in Brazoria County, near Alvin, Tex., the company headquarters; 17,000 acres east of Dallas in Hopkins County and 9,500 acres near Texarkana.

County Exceeds Nation

The prince’s own country is smaller than his holdings in Brazoria County alone. The principality of Liechtenstein, nestled in a valley between Switzerland and Austria, covers only 62 square miles.

Various properties accumulated by the Royal Family over the last 700 years are administered by The Prince of Liechtenstein Foundation, which has been acquiring American farmland.

International Paper is one of the world’s largest natural resources companies, holding more than 6.3 million acres of timberland primarily in the southeastern United States.

Department of Agriculture officials said the money paid to Farms of Texas easily surpassed payments to any other farm in the state in 1986.

‘A Real Loophole’

“That’s a good example of what most people will perceive as a real loophole--as money that is not going to the family farmer,” said Rep. Larry Combest (R-Tex.).

The government spent a record $25.6 billion in fiscal 1986 on various agriculture programs. In addition, provisions in last year’s farm law, aimed at helping the family farm, also are resulting in large payments to major institutional producers.

Dan Mathews, who manages 90,000 acres of farm and ranch land for the prince’s Farms of Texas, said he took part in the federal subsidy program not because he wanted to, but because he had to.

Join ‘or Go Broke’

“In 1985 we didn’t participate because we could operate outside the government program,” Mathews said in a telephone interview. “But in 1986 we were forced in. By forced, I mean the government started selling rice at half price. Either you join in the program or go broke.”

Sen. Phil Gramm (R-Tex.) says the farm subsidy system should be restructured to close loopholes.

“How do you compete as a family farmer when the federal government is paying some foreign prince $2.2 million in subsidies to produce a product that there is no market for?” Gramm asked.

The problem should be partly solved when newly passed legislation capping total subsidies to farmers at $250,000 goes into effect next year, Rep. E. (Kika) de la Garza (D-Tex.) said.