AEI thinks that it will be if something isn’t done.
Roughly $20-$30 billion in taxpayer funded subsidies go to “farmers.”
These farmers tend to be far wealthier than average Americans. And no wonder, they are able to reap the benefits of a powerful agricultural lobby which is working full time to make sure money flows to the corn and wheat belts of America.
Oh, and the sugar bowl down south too. And can’t forget the dairy farmers. And…Well, you get the point.
“This happens because farm subsidies have changed a lot in the past 20 years. They used to be mainly price supports, sending our taxes to farmers when prices were too low to keep them in business. Now, they take the form of payments that flow regardless of prices.
Crop insurance subsidies are now the largest subsidy in the farm bill. You’d think that farms with hundreds of thousands of dollars in revenue each year would buy their own insurance to protect them in case of bad weather. Instead, taxpayers pay an average of 60 percent of crop insurance premiums for farmers — and we also subsidize the insurance companies that sell the policies.
This boondoggle alone costs us over $6 billion a year — and the cost is going up.”