October 18, 2007

Minnesota Farmers deserve a smarter safety net

Historically, the Farm Bill has been an important safety net for farmers, providing financial assistance when extreme economic or growing conditions threaten farms. But after languishing without a substantial update for some 30 years, today’s ‘safety net’ is a tangled quagmire for America’s most disadvantaged farmers. The 2007 Farm Bill must provide a smarter safety net that reflects 21st century realities. After delays, the Senate Ag Committee is now expected to meet on the 2007 Farm Bill next week – now is the time to ask for change.

How is the Farm Bill’s safety net broken? Trade-distorting commodity subsidies, which reward overproduction and encourage unfair trade, are paid through complex formulas that favor the rich and undermine small, independent growers. This map displays who in Minnesota is receiving Farm Bill subsidy payments. Notice that some of the greatest beneficiaries are found in places like Edina and Minneapolis – cities where Farm Bill millionaires outnumber tractors. Visit the Environmental Working Group's website to learn who really benefits from federal farm subsidies.

The majority of farmers receive little to no subsidies, yet are forced to compete with corporate conglomerates who can afford to pay more for land (driving up prices) and sell crops for less (suppressing markets). These unneeded subsidies are being paid while programs that could help struggling farmers, such as conservation initiatives and disaster relief, get short-changed. At the same time, trade-distorting subsidies are jeopardizing avenues of international ag trade by violating international agreements that then allow other countries to impose penalties or restrictions on American goods. The WTO recently made this kind of ruling against American cotton subsidies, permitting Brazil to take retaliatory action.

Minnesota farmers deserve a smarter safety net. One that opens doors instead of closing them; one which no farmer can fall through. Reducing the problematic trade-distorting subsidies would provide money to bolster disaster relief programs, support crop diversification, fund innovative conservation programs, and provide grants to small American farmers. International trade would become more fair, allowing millions in the lesser-developed world to grow their way out of poverty.

The Senate Ag Committee is scheduled to meet on the 2007 Farm Bill next week. Continuing the antiquated status quo must not be an option. Please call Senators Coleman and Klobuchar today and ask 10 of your friends to do the same. Use the 800 number on the right hand side bar, also described in an earlier post.

The Senate Ag Committee's decision will shape the Farm Bill's safety net for the next five years. Please act now.