NORTH IOWA--
They've always been a staple in this region, but is the small family farm actually becoming an endangered species? “Every year there's fewer farmers on the land, every year farms are getting bigger,” said Craig Cox.Cox is the Midwest vice president for the Environmental Working Group-a nonprofit that researches and advocates on things like farming policy. The group also tracks the trail of farm subsidies. “There's been really some pretty compelling research done that suggests that these subsidies actually encourage farms to get larger and consolidate and therefore end up with fewer farmers on the land,” said Cox.
We also talked by phone with Congressman Tom Latham. He said today's marketplace is making it hard for smaller operations to compete. “The operational costs today are so enormous that it’s very difficult for smaller operators to be able to compete,” he said.
Some say those high operational costs are precisely why farm subsidies are needed.
“It helps keep the numbers of smaller producers, medium sized producers in the business where they might not be able to compete in the industry,” said Barry TerHark, the Cerro Gordo county executive director for the Farm Service Agency.
TerHark said taxpayer support keeps producers on the land in years that are rife with financial strife. “Back between ‘98 and 2002 that was a key part of the total income of what producers received,” he said. He said corn and soybean prices dropped so low during that period some might have been forced to leave the land. “It kept a lot of producers that would have struggled financially, it kept them farming,” said TerHark.
The tough part is deciding what amount is enough--and what is too much. We looked at the top recipients in North Iowa and Southern Minnesota from 1995-2006. We found several farms receiving millions of dollars in that time period. Here is a sampling of some of the largest recipients: one operation in Franklin County raked in 2.5 million dollars. Another in Wright County piled up 3.3 million, and one in Freeborn County received just over 3 million.
“In the last 14 years we've spent over 153 billion dollars in this country on farm subsidies,” said Cox.
TerHark said that money goes from Washington's coffers to the pockets of local communities. “Not only does it help the producers, but it helps local communities where they don't have that manufacturing base,” he said. He said in addition to helping keep farmers farming, that money is spent locally--which is good for the local economies. Here are a few examples of what some of our area counties have received over the last 14 years:Cerro Gordo got 201 million dollars over that time period. Mower got close to 218 million and Freeborn got more than 211 million.
Terhark said that money helps keep our food prices low by keeping the number of producers higher. But Cox argues a minority of those are receiving a majority of the money. “Ten percent of the farmers get 70 percent of the money,” said Cox.
The 2008 farm bill attempts to crack down on very wealthy land owners searching to cash a government check--by establishing limits on both farm and non farm income. “Congress took some baby steps in 2008 which are good steps forward but they're baby steps,” said Cox.
But there are still loopholes. We found you can make up to $500,000 a year outside of farming and another $750,000 a year in farming profits before you're ineligible for taxpayer support. That means it's possible to earn more than a million dollars a year and still cash a government check.
Latham said this scenario is rare. He said there are parts to every bill that can be stronger--but he said he considers the 2008 farm bill a giant step in the right direction toward cutting down on abuses. “Previously there were no limitations as far as off farm income nor farm income and so there was an effort in the farm bill to at least address the issue,” he said.
While everyone we talked with seems to think the 2008 farm bill established some much needed reform, Cox said more needs to be done to make sure your money is going to those who really need it. “We have to go much, much, much farther to make sure these subsidies are really going to the working farmers that need the support to actually stay on the land,” he said.
Terhark said another thing the new farm bill does is limit how much a land owner can receive each year. In the past, he said an owner could get up to $40,000, but for up to three farms. Now, the government caps the amount at $40,000 per individual, regardless of the number of farms they own.
If you're interested in learning more about where those subsidies dollars go, we've provided the link to the Environmental Working Group's database.
