Congress Should Help Hungry Americans, Not Rich Farmers
December 22, 2020
The farm sector has been a surprising standout economic performer during the pandemic, and it appears to have avoided any long-term sector-wide major catastrophic consequences associated with the coronavirus. After adjusting for inflation, according to U.S. Department of Agriculture projections, farmers are enjoying their fourth best year ever over the past 50 years, earning 43 percent more than in 2019. By any standards, the farm sector is doing very well.
Yet, despite the good news, Congress is throwing in an additional $13 billion in subsidies to farm businesses in the new pandemic relief package.
Farmers have done exceptionally well in 2020 after receiving over $50 billion in federal subsidies. The CARES Act included an astonishing $32 billion gift from Congress for perceived COVID losses from associated economic lockdowns. An additional $4 billion was given for losses “associated” with Trump’s trade war with China, followed by $16 billion from permanent, long-standing price and income subsidy programs — i.e., what farmers normally get yearly from the federal government.
