What the Farm Bill Does Now, and What It Does Not Do
The farm bill principally tries to help U.S. farmers. But over time it has become less and less successful at doing so. The farm bill includes commodity payments, which are cash payments made to farmers growing mostly five crops—corn, wheat, cotton, rice and soybeans. Commodity payments are supposed to protect farmers from low prices by making up the difference between a target price and the actual market price.
In reality, commodity payments are not very effective risk management tools for farmers. Commodity payments have shifted dramatically to the very largest farms, which often are also the wealthiest farmers. Farmers who need payments the least are receiving the most, and two-thirds of U.S. farmers receive no payments.
The portion of the current farm bill devoted specifically to rural development is very small. This is out of balance with the needs of rural America. Some 50 million Americans live in rural communities; only 3 million are farmers. As the main source of federal support for rural America, the farm bill needs to reflect the fact that increasingly the non-farm economy sustains these communities.
In recent years, U.S. farm policy has also become unintentionally devastating for small-holder farmers in the developing world. Because the commodity payment system encourages U.S. farmers to concentrate on the five crops, world markets are being flooded with these crops, which are sold at prices lower than what it costs to produce them.
For example, in spite of their much lower production costs, cotton farmers in countries like Senegal, Burkina Faso, Chad and Mali cannot survive when world prices are so low. U.S. cotton commodity payments are partly to blame. For these African nations, where 10 million people who earn roughly $1 to $2 a day depend directly on cotton, U.S. farm programs shatter hopes of reducing hunger and poverty.
The farm bill is also a primary tool for reducing hunger in the United States. The Food Stamp Program, a major component in the farm bill, is our nation's first line of defense against hunger. When Hurricane Katrina hit the Gulf Coast, the Food Stamp Program was a shining example of a federal program that responded in a timely and efficient manner. The Food Stamp Program served an average of 26 million people per month in 2005. It should be strengthened to provide a nutritious and sufficient diet for hungry people.
