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Will Farm Bill Bring “Good News" to the Poor?

November 05, 2007

Will Farm Bill Bring “Good News" to the Poor?

Permalink 10:47:03, by Grant Email , 679 words  
Categories: General

That may depend on whether Christians raise their voices over the next 24 hours. (Advocacy tools from MCC and Bread for the World.)

Today the U.S. Senate takes up debate on the once-every-five-years Farm Bill. Impacted by the mammoth $288 billion legislation are programs ranging from commodity farmer subsidies to food stamp programs. For a range of articles on the bill, see the following: LA Times Editorial, Sioux Falls Argus Leader article, San Jose Mercury News.

As Michael Pollan, author of “The Omnivore’s Dilemma,” writes in a NY Times Op Ed this past weekend, the Farm Bill has long been a cake divided between the big commodity agribusiness interests (corn, wheat, rice, soybeans and cotton). However the equation has recently shifted, both because of record high prices for some of those commodities like corn, and because increasing numbers of concerned citizens (including Christians) are linking the Farm Bill to questions about health policy and poverty reduction initiatives.

When was the last time you ate something that didn’t contain corn syrup?

The U.S. has long subsidized the five big commodities listed above in the interest of protecting farmers from price fluctuations and in maintaining international dominance when it comes to trade in these commodities.

The result of these policies, where farmers are guaranteed a floor price for their product, encourages overproduction, driving down the price of the commodity in the market. The result is that foods that utilize high amounts of corn products like corn syrup can be produced more cheaply. In a competitive market, the end result is that cheaper calories come in the form of junk food.

Meanwhile, produce farmers (fresh vegetables) benefit very little from the public funding in the farm bill, if at all. This makes healthier foods (the ones our parents and our doctors are trying to get us to eat more of) relatively more expensive. For people on tight grocery budgets it becomes harder to get a balanced and healthy diet. Eating lots of high sugar, high fat foods is one reason why the biggest killer in the U.S. is heart disease and why millions struggle with diabetes and other health complications.

There are many things that could increase people’s ability to get healthier food on tight budgets and a number are contained in several amendments that will be suggested to the farm bill. Some would make it easier to make school lunches healthier. Others would increase funding for local farmers markets. Individually these are baby steps – collectively they are improvement.

To find out more about these amendments and get contact information for your senators, please check out Bread for the World’s website here.

The current system makes it harder for small farmers in the U.S. and around the world.

While improving the farm bill is important, it’s also important to remember the flaws in the whole system itself. U.S. crop subsidies, which given the current political reality will probably remain part of any Farm Bill that passes in 2007, are one of the largest distortions in the world market. (We have company in this dubious category from Europe, which also maintains large subsidies that need to be addressed).

Many of our farm subsidies have been ruled illegal by the World Trade Organization. In many cases they make it impossible for small farmers in developing countries to compete (U.S. cotton farmers in 2005 received $5 billion in subsidies for growing a crop that would have brought only $4 billion on the market – see Oxfam article here.)

Again, some of the amendments being proposed to the current farm bill would curb some of the worst parts of the subsidy program (one proposal would cap the largest payment to an individual farmer at $250,000 – directing more support to small farmers and less to large agribusiness). But the long-term goal needs to be, at a minimum, leveling the playing field between U.S. commodity farmers and farmers in the developing world.

To learn more about perspectives from MCC friends and partners, click here.

To learn more about the 2007 Farm Bill, see Oxfam's site.

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Comments, Trackbacks, Pingbacks:

Comment from: Krista [Visitor] Email
Great post Grant. I've been in the Midwest all week and at one church I spoke with a family farmer in Indiana who was bemoaning the current subsidy system and how much it helps big agribusiness and how little it helps small farmers. He said he had a neighbor who received a $28 subsidy check.
PermalinkPermalink 2007-11-06 @ 09:01

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