Facts and Figures

The U.S. Department of Agriculture (USDA)

• Will spend $89 billion in 2007, or $774 for every U.S. household
• Operates 198 subsidy programs, listed here
• Employs 105,000 workers
• Administers 7,400 offices across the nation
• Oversees 1,791 pages of laws and 10,720 pages of regulations
• Imposes 84 million hours of paperwork burdens on Americans

Downsize This!

• Agricultural Subsidies. The USDA provides up to $30 billion annually in cash subsidies to farmers of corn, cotton, rice, soybeans, wheat, and other commodities. It also funds an array of support activities for farmers including research, loans, and insurance.
• Agricultural Regulations and Trade Barriers. The USDA regulates the markets for sugar, milk, and other products with respect to pricing, production, and distribution. The government also imposes tariffs and quotas on numerous farm commodities.
• Rural Subsidies. The USDA operates a range of subsidy programs for businesses and individuals in rural areas.
• Food Subsidies. Most of the USDA’s budget is devoted to food welfare activities, including the food stamp and school lunch programs.
• Forest Service. The Forest Service controls 193 million acres of forest and provides subsidies for businesses and state governments.

Spending Cuts Summary

Here are proposed spending cuts to downsize the USDA. The cuts would save federal taxpayers $80 billion annually, or $696 for every U.S. household.

Timeline of Government Growth

See this timeline for a list of key events in the USDA’s growth.

Reading Room

Here are useful data sources and studies that describe the operations and shortcomings of USDA programs.

Cato Experts

Chris Edwards, director of tax policy studies, cedwards@cato.org
Daniel T. Griswold, director, center for trade policy studies, dgriswold@cato.org
Sallie James, trade policy analyst, sjames@cato.org
Stephen Slivinski, director of budget studies, sslivinski@cato.org
Randal O'Toole, senior fellow, rotoole@cato.org

New Cato Study on the 2007 Farm Bill