The High Price of Federal Agriculture Subsidies: - What’s the True Cost of Farming as Usual?

EXPLAINER The High Price of Federal Agriculture Subsidies: What’s the True Cost of Farming as Usual? May 2024 Key Programs Summary and Terms The true cost of propping up farm incomes and shielding agribusiness from the Three major programs— competitive market forces other industries face is extremely high. [...] While this agriculture risk coverage (ARC), lucrative subsidy regime benefits certain crops and the largest, wealthiest farms, price loss coverage (PLC), and it does so to the detriment of many other factors—from the environment to crop insurance—make up small, beginner farmers to individual taxpayers’ wallets. [...] the bulk of the farm income As the price to maintain the status quo keeps mounting, Congress should safety net. [...] Subsidies can create an artificial market, making it lucrative to repeatedly Crop Insurance: grow the same crop on the same acreage for multiple growing seasons, thus Administered by private depleting the soil of nutrients. [...] companies guaranteed a top-dollar rate of return, crop insurance shifts much of the risk involved Federal favoritism toward a handful of commodities can result in riskier farm in farming to taxpayers, who operations that can be more vulnerable to blight, pests, and weather events.