‘City Boys’ vs. the Agro-Welfare Monster : House Panel Determinedly Challenging Size, Purpose and Morality of Programs

Every five years Congress acts to renew the farm subsidy program. It can’t bear to confront the monster any more often than that. And every five years politicians and lobbies representing the main beneficiaries of the huge agro-welfare system easily crush all who dare to question its cost and value. This year things could be just a little different. A small bipartisan coalition of “city boys” in the House is determinedly challenging the size, purpose and even morality of some of the programs that boost the incomes of most of the nation’s farmers. Consumers, in whose behalf they are acting, should wish them well.

The last five years have seen history made as a record $88.6 billion in taxpayers’ money was spent on agriculture programs. In the last two years farm income also reached record levels. Once, farm programs were sold as temporary measures to see a limited number of farmers through hard times. No more. Last year 82% of all growers of wheat, corn and rice collected federal payments, providing growers of these major crops with nearly one-third of their income.

The system has long since spun out of control. Item: Congress appropriates nearly $100 million a year to prop up the production of wool and mohair. The Congressional Budget Office reports that the payments go to just a handful of producers. In the case of wool, the subsidy amounts to more than twice the market price. What’s the result? Under the longtime program, wool and mohair production have not flourished, but declined.

Federal farm payments distort the market in endless ways. For example, the United States now imports a lot of its vegetables, but not because it lacks land to grow vegetables. It’s because farmers find it more profitable to use their acreage for subsidized crops or to be paid for taking land out of production.

Twenty years ago U.S. farmers had 81% of the world soybean trade; now they have 35%. Why? Because about 20 million acres once used to grow soybeans have been switched to corn and other subsidized crops. A lucrative world market has been lost. Now--surprise, surprise--soybean farmers are saying that they too need generous federal subsidies.

The horror stories can be told almost endlessly. Is any relief in sight? A hardy band of House rebels think they have a chance to cut $1 billion or so from the $12 billion or more farm subsidy program. A public that pays for all this twice-over, through taxes and then at the checkout counter, can only cheer them on.