WHO RECEIVES AGRICULTURAL SUBSIDIES?

Agricultural subsidies are government payments to farmers who cultivate their land to produce crops. These payments are made because
farmers often experience unforeseen circumstances, such as adverse weather or an infestation of pests. Agricultural subsidies are
intended to provide economic stability to protect farmers against these unforeseeable circumstances, however that has not always proved
to be the case. According to the Environmental Working Group, "from 1995-2009 the largest and wealthiest top 10% of farmers received
74% of all agricultural subsides" (White par. 11). Although these subsidies were intended to benefit the average farmer, this statistic is
evidence that the beneficiaries of agricultural subsidies are often wealthy, leaving the average farmer with little to no payment.

AGRIBUSINESSES

FARMERS

Agribusiness is the business of agricultural production. It includes

agrichemicals, breeding, crop production (farming and contract
farming), distribution, farm machinery, processing, and seed supply,
as well as marketing and retail sales. Some equate agribusiness to
corporate farming, which is a business aimed solely at producing
crops for profit. According to Dayen, "referring to beneficiaries as

According to the Imhoff, a farm is "any place from which $1,000 or

more of agricultural products were produced and sold, or normally
would have been sold, during the year" (Imhoff par. 2). This low set
standard makes it possible for a large number of people to be
classified as "farmers" by the USDA, even though they may only be
producing for themselves.

'farmers' underplays how giant agribusinesses really benefit from

subsidized crop insurance. There have traditionally been no limits
to premium support, meaning the richest businesses reap the most
benefits" (Dayen par. 4). The richest famers are often in the
business of producing crops and have specialized techniques to
maximize output and therefore profit.
Some argue that agribusiness receive a larger portion because of
this specialization, while small farmers do not because they
generally only produce for themselves (Imhoff par. 4). According to
Imhoff, the USDA has low standards for qualifying to be a farmer.
This causes it to appear as if most farmers do not receive subsidies,
when it reality it could be because of the low standard set by the
USDA (Imhoff par. 3). Companies, such as Monsanto, are receiving
a large portion of the ag. subsidies because they are producing a
much larger quantity of crops than the small-independent farmers.
While this may seem unfair to many, it all comes down to
production. According to Imhoff, "just a fractionaround 15
percentof all farms generate most of the agricultural output,
primarily because they have specialized in commodity crops"
(Imhoff par. 3).
The Farm Bill was intended to help the small family owned farms,
but it has actually led to a reduction in small farms. This has
occurred because smaller farms do not receive the subsidies they

Reasons to support Agricultural Subsidies by Farmers:

1.

Saving the family farm

2.

Cheap food supply

3.

Maintain the Environment

See the info graphic below to see how the Farm Bill benefits
farmers!

need to be profitable coupled with the fact that they cannot

produce enough to keep up with mega-farms. Those who do rely on
farming as their main source of income are struggling to pay for the
high price of seed, which Monsanto sells. They are also struggling
to pay for the increased prices of fuel and equipment needed to
farm their land.

n.a. "5 Ways The Farm Bill Strengthens The Economy". CropLife. 8 April 2014. Web.
2 November 2014.

Sources:
Dayen, David. "The Farm Bill Still Gives Wads of Cash to Agribusiness. It's Just Sneakier About It" New Republic. 4 February 2014. Web. 22
September 2014.
Imhoff, Daniel. "Overhauling the Farm Bill: The Real Beneficiaries of Subsidies." The Atlantic. 21 March 2012. Web. 22 September 2014.
n.a. "5 Ways The Farm Bill Strengthens The Economy". CropLife. 8 April 2014. Web. 2 November 2014.
White, Deborah. "What Are U.S. Farm Subsidies?" About News. n.d. Web. 22 September 2014.

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