American cities still lack the resources to prevent a
catastrophic terrorist attack. And Washington sends $110 million in
farm subsidies to an Arkansas co-op named Riceland Foods.
Many troops risking their lives in Afghanistan and Iraq lack the
necessary equipment to protect themselves, such as body and vehicle
armor. And several members of Congress vote themselves farm
subsidies as much as 119 times larger than what the typical farmer
receives.
Millions of overtaxed Americans live paycheck to paycheck. And
Washington doles out these tax dollars to David Rockefeller, Ted
Turner, basketball star Scottie Pippen and former Enron CEO Ken
Lay.
This year, Washington will spend more on corporate welfare than on
homeland security.
What's going on?
Budgets are about setting priorities. During wartime, misplaced
budget priorities can put American lives in danger. The $60 billion
spent annually on corporate welfare represents $60 billion that now
cannot be spent protecting American troops abroad and defending our
cities from al Qaeda.
America's largest and most wasteful corporate welfare program is
farm subsidies. The 2002 farm bill will cost taxpayers $180 billion
over 10 years. It remains a shining example of the interest-group
excess that has pushed annual federal spending above $20,000 per
household while also diverting funds from vital national
priorities.
American farm policy is an exercise in economic incoherence. It
attempts to remedy low crop prices by paying farmers to plant more
crops, which only lowers prices further. After paying these farmers
to plant more crops, lawmakers turn around and pay other farmers to
plant fewer crops. Worst of all, America's farm subsidies undercut
Third World farmers and keep millions of people in poverty.
Lawmakers, summoning outdated stereotypes, assert that farm
subsidies are needed to prevent the bankruptcy of millions of
family farmers, who perform backbreaking labor for poverty incomes.
Yet farming in 2004 is a stable, profitable industry dominated by
large agribusinesses using 21st-century technology. The typical
farm household reports an income 17 percent above the national
median and a net worth of more than $500,000 -- despite living in
rural areas with lower costs of living.
True, many farmers still struggle. But they aren't the ones
subsidized. If farm subsidies were really about poverty relief,
Congress could guarantee every full-time farmer an income of
$35,000 per year for $4 billion.
Instead, farm subsidies cost $12 billion to $30 billion annually.
Lawmakers distribute two-thirds of this bounty to the top 10
percent of subsidy recipients. The vast majority of these
households, who work on large farms, report an average income of
more than $135,000. Are these the "poor family farmers" lawmakers
are talking about?
It gets worse: 78 farms received more than $1 million each in
subsidies in 2002. The $110 million received by Riceland Foods that
year was more than Washington gave to every farmer in 12 states
combined. Their subsidy alone could have funded seven Blackhawk
helicopters, 1,200 airport luggage scanners or an additional 1,700
border patrol agents.
Not to be outdone, a dozen Fortune 500 companies, including John
Hancock Mutual Life Insurance, Westvaco, Chevron and Caterpillar,
have pocketed farm subsidies as much as 510 times larger than what
the median farmer receives.
Even Congress gets into the act. Members of both parties and both
houses of Congress have received farm subsidies as much as 119
times larger than those given the median recipient. Some of these
lawmakers even sit on the agriculture committees that oversee these
programs.
During World War II, Americans sacrificed their lives, incomes, new
cars and nearly every consumer good to support the war effort.
During the war on terrorism, lawmakers won't ask millionaires,
agribusinesses -- or even themselves -- to sacrifice their
excessive government handouts.
Brian Riedl
is Grover M. Hermann Fellow in Federal Budgetary Affairs in the
Thomas A. Roe Institute for Economic Policy Studies at The Heritage
Foundation.
Distributed Nationally on the Knight-Ridder Tribune Wire