Ag Subsidies Retarding New Farmers

Here is a letter to the editor that I wrote today to the New York Times on a recent article they wrote about agricultural subsidies.

Dear Editor:

Your article “Big Farms Reap Two Harvests, With Subsidies a Bumper Crop” ignored four critical issues that are major impediments to the building of a healthy and innovative industry. These subsidies keep young people from becoming farmers, don’t allow them to achieve needed economies of scale and turn honest people into schemers.

1. Because so much of a farmer’s net income comes from government payments, they are often reluctant to retire and forgo a guaranteed check. Farmers have the second oldest average age of any profession in the country at 56 years of age. Young people aren’t able to begin farming as a result.

2. Government payments get translated into higher land prices, further erecting barriers for young people to enter the profession. Good land in my part of Illinois is selling for well over $4,000/acre. Without a government subsidy, it would probably be 20 to 40% less.

3. Because of payment limitations built into the government programs, farmers often have to enter into schemes involving family members and others to set up numerous “operating entities” to satisfy governmental regulations. I know of several good, young farmers who got out of farming rather than subject themselves to operating in this “grey area” of the law.

4. The current program helps farmers who have bumper crops more than farmers who might have a crop disaster. A farmer with 220 bushels/acre of corn typically got over $70/acre while one with only 60 bushels/acre because of weather problems received only $20/acre.

We need to return agriculture to a market based, subsidy free status. It would probably cause some short term pain, but would be better in the long term.