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Federal Subsidies Turn Farms Into Big Business - washingtonpost.com

Federal Subsidies Turn Farms Into Big Business - washingtonpost.com

The cornerstone of the multibillion-dollar system of federal farm subsidies is an iconic image of the struggling family farmer: small, powerless against Mother Nature, tied to the land by blood.

Without generous government help, farm-state politicians say, thousands of these hardworking families would fail, threatening the nation's abundant food supply.

Special Report
Harvesting Cash

Working a Farm Subsidy

As Congress prepares to debate a farm bill next year, The Washington Post is examining federal agriculture subsidies that grew to more than $25 billion last year, despite near-record farm revenue.

• Farm Program Pays $1.3 Billion to People Who Don't Farm, July 2
• Growers Reap Benefits Even in Good Year, July 3
• No Drought Required For Federal Drought Aid, July 18
• Benefit for Ranchers Was Created to Help GOP Candidate, July 18
• When Feed Was Cheap, Catfish Farmers Got Help Buying It, July 18
• Aid to Ranchers Was Diverted For Big Profits, July 19
• Aid Is a Bumper Crop for Farmers, October 15
• 'Farming Your Insurance', October 15
• Too Big for Disaster Aid, Farmer Chooses to Divide and Conquer, October 15
• Most Farmers Skipping Subsidized Loans and Going for the Cash, October 15
• Crop Insurers Piling Up Record Profits, October 16

» FULL COVERAGE
About the Series
As Congress prepares to debate a new farm bill next year, The Washington Post is examining federal agricultural subsidies that grew to more than $25 billion last year, despite near-record farm revenues. Today's article discusses how the very policies touted by Congress as a way to save small family...
A Big Farm, but Not So Big It Could Get By Without Subsidies
While some farmers and agricultural experts see a downside to farm subsidies, others say the payments are a fair way to help out farmers in need. "Some years, that's probably what I live on," Steve Loschen said. "Honest to goodness. It helps me stay current on equipment payments and helps pay for my...
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"In today's fast-paced, interconnected world, there are few industries where sons and daughters can work side-by-side with moms and dads, grandmas and grandpas," Rep. Jerry Moran (R-Kan.) said last year. "But we still find that today in agriculture. . . . It is a celebration of what too many in our country have forgotten, an endangered way of life that we must work each and every day to preserve."

This imagery secures billions annually in what one grower called "empathy payments" for farmers. But it is misleading.

Today, most of the nation's food is produced by modern family farms that are large operations using state-of-the-art computers, marketing consultants and technologies that cut labor, time and costs. The owners are frequently college graduates who are as comfortable with a spreadsheet as with a tractor. They cover more acres and produce more crops with fewer workers than ever before.

The very policies touted by Congress as a way to save small family farms are instead helping to accelerate their demise, economists, analysts and farmers say. That's because owners of large farms receive the largest share of government subsidies. They often use the money to acquire more land, pushing aside small and medium-size farms as well as young farmers starting out.

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