Since at least 1996, every President’s budget request has found something – agriculture subsidies, crop insurance, or other farm programs – to eliminate or trim. However, for the second year in a row, President Biden broke with bipartisan tradition, finding exactly $0 in the FY23 budget request for farm subsidy reforms.

Farmers – and taxpayers alike – agree there’s waste, fraud, and abuse in farm programs. Just last week, farmers in northeast Nebraska told us that they don’t need farm payments. One farmer said that if Congress and the US Department of Agriculture (USDA) are going to continue fail to enforce payment limitations in farm programs, then agriculture subsidies should be eliminated. Prior to the Biden Administration, Presidents ranging from Bush to Obama supported farm subsidy reforms, such as tightening eligibility requirements and reducing subsidies to the largest and wealthiest producers/landowners.

Farm subsidy and crop insurance reforms proposed in past budgets, if enacted, would have saved taxpayers anywhere from $30-$50 billion without negatively affecting program operations or goals. Some of these reforms would also benefit the environment and climate by reducing subsidies that promote excessive risk taking at taxpayer expense, such as subsidizing crop plantings on land prone to flooding and/or drought.

Details can be found in the chart below, including the lack of reform proposed by the Biden Administration in both FY22 and FY23.

Proposed Farm Subsidy Reforms in Budget Requests

Savings in FY2019 Budget Request Savings in FY2020 Budget Request Savings in FY2021 Budget Request Savings in FY2022 Budget Request Savings in FY2023 Budget Request
President  Trump Trump Trump Biden Biden
Limit subsidy eligibility to $500,000 Adjusted Gross Income (AGI) $1.125 billion for commodities $1.306 billion for commodities $1.306 billion for commodities Not proposed Not proposed
Streamline conservation programs $13.042 billion $8.872 billion $9.145 billion Not proposed Not proposed
Eliminate lower priority Farm Bill
programs
$0.613 billion $.500 billion $0.43 billion Not proposed Not proposed
Tighten commodity payment limits and
close loopholes
$1.348 billion $1.348 billion $1.348 billion Not proposed Not proposed
Eliminate Livestock Forage program $4.483 billion $7.819 billion $5.040 billion Not proposed Not proposed
Rescinding Ability to Collect Duplicative Assistance Not proposed Not proposed $.360 billion Not proposed Not proposed
Total Proposed 10-Year Savings (in Billions) $21 $20 $18 $0 $0
RELATED ARTICLE
Turning Up the Heat

With the 2023 farm bill debate underway, Congress must get to work to pass common sense reforms to farm subsidy programs that are in dire need of reform. Don’t just take our word for it. Farmers – and academics – agree that excessive subsidies to individuals who don’t need federal support lead to higher land prices, worse water quality, environmental and climate damage, and obstacles for young, beginning, socially disadvantaged, and other farmers. Reforming the farm safety net – which cost taxpayers a record $47 billion in 2020 – would also improve farmers’ bottom lines and increase their resilience to future climate and economic challenges, a win-win. The Biden Administration should listen to what farmers are saying – sometimes, less is better.

RELATED ARTICLE
Accountability in Carbon Capture: Insights from the Latest GAO Report

Share This Story!

Related Posts