Agriculture Is Doing So Well (ergo We Must Subsidize It)

Farmer-friendly members of Congress are such a target-rich environment for ridicule when it comes to poor agriculture policy that it would be a full-time job just blogging about their utterances. So I try to spare you, most of the time. (You’re welcome.) But occasionally a quote passes my desk that is so ridiculous that I just have to share.

Senator Debbie Stabenow, chairwoman of the Senate Agriculture Committee and a Democrat (not that that matters) from Michican, yesterday made a statement that contains a pretty obvious logical fallacy:

“American agriculture represents a bright spot in our economy,” Chairwoman Stabenow said. “Agricultural exports are reaching record highs and American farmers and ranchers are continuing to outpace the rest of the world in productivity and efficiency. Sixteen million American jobs are supported by American agriculture, so it’s critical we pass the Farm Bill this year. We must provide farmers and small businesses the certainty they need to continue growing and helping the country’s economy recover.” [emphasis mine]

Which of course raises the question: If U.S. agriculture is doing so well, why do we need to subsidize it? To maintain those sixteen million jobs the Senator claims are supported by U.S. agriculture? Please. Research has shown a negative link between farm subsidies and rural development, including jobs creation (more here, including on rural subsidies more broadly). And the money for farm programs is extracted from the productive sector of the economy, at ensuing cost.

In the meantime, a non-subsidized sector of the U.S. farm sector is faring very well indeed. The popcorn industry is booming thanks to sales to Colombia following the U.S.-Colombia Free Trade Agreement, which came into effect last month. That hasn’t stopped Nebraska’s senators from asking for hand-outs on behalf of the industry, of course, but the lesson to me seems clear: freer trade, fewer subsidies. [HT: Andy Roth at the Club for Growth]

For more on Cato’s work on agriculture subsidies see here, here, here, here and here. And a whole lot more here.