Low commodity prices, crop destroying weather, and Trump’s tariffs and trade war with China (and as of June 16th India, https://www.usatoday.com/story/money/2019/06/16/trade-war-india-hits-u-s-more-tariffs/1471140001/ ) are having a devastating effect on our family farmers! The 2018 Farm Bill, as well as past farm subsidies, are failing independent family farmers. For decades hundreds of thousands of our tax dollars have been given to factory farms owned by “city slickers” (Scott Fuller, Opinion Contributor to The Hill (11-29-2018), and to foreign owned corporations with multiple operations in more than one country, as well as the U.S. Things do not look any brighter for the next round of aid expected to begin in July. It’s time we ask, who is looking out for the family farmer? The current administration and the GOP don’t seem to be.
The Environmental Working Group (EWC), a non-profit, non-partisan organization, reports that Trump’s aid program has failed to help the farmers most threatened by the trade war. The first payments intended to help mitigate farm losses went mostly to farms with annual revenues of several million dollars, as well as out of state and foreign corporation. Those farms don’t need the aid to survive. They benefit the most from federal crop support programs and low-priced crop insurance that has already covered some of their losses. (Los Angeles Times, May 31, 2019, By Michael Hiltzik; https://www.latimes.com/business/hiltzik/la-fi-hiltzik-trump-farm-bailout-20190528-story.html)
The EWC analysis shows that 68% of the aid money has been given to the top 10% of the largest, most financially secure farmers or corporations. It’s ironic that few of these “farmers” or corporation officials have ever been on the farms they own. Meanwhile, many of our smaller farmers are being driven out of business through no fault of their own.
Des Moines Register articles of Nov. 25, 2018 and May 24, 2019 point out some examples of payment disparity. In round one, soybean growers received $1.65 per bushel while corn growers got 1 cent per bushel. In her Nov. 25th article, Donnelle Eller notes that “some checks will barely cover the cost of a Starbucks coffee for a few growers…twenty-four Iowa farmers snagged less than $10, with 11 getting $5.00 or less.” Data from the EWC shows that of almost 4,300 payments to Iowa farmers through October about 100 was for less than $25. Overall, payments averaged $7,236 which falls far short of any meaningful relief. https://www.desmoinesregister.com/story/money/agriculture/2018/11/25/federal-trade-assistance-trickles-iowa-farmers-hurt-trade-war/2065652002/
Although this problem falls hardest on the Midwest, the rest of the country is watching. The Los Angeles Times notes that our own Charles Grassley will not face the same fate as our struggling farmers. Sen. Grassley, and his son and grandson, grow corn and soybeans. Between 1995-2017 they collected $1.6 million in government subsidies. In fairness, the Grassleys’ farm can be considered a family farm, facing the same downturns as other farms, and is legally entitled to apply for aid. He did so in the first bailout and will be applying again for the second. However, as LA Times reporter, Michael Hiltzik points out, Sen. Grassley has legislative oversight of this program. He supported the first round of tariffs, but now appears to be critical of the second. Hiltzik cautions that, “Grassley may find himself increasingly caught in a policy vise as Trump spreads his trade warfare more widely.” (LA Times, et.al.)
Trump pays lip service to the plight of family farmers by calling then them “great patriots” who are willing to make this sacrifice for their country. In an article by Sylvan Lane, in THE HILL, May 27, 2019, she quotes President Trump, “’The $16 billion in funds will help keep our cherished farms thriving and make clear that no country has a veto on America’s economic and national security…We will ensure that our farmers get the relief they need and very, very quickly.”’ Once again he demonstrated a woeful ignorance and lack of regard for the severity of the independent farmers’ sacrifice. His aid is too little too late. There is no more time; the crisis is now. Losing their farm is much too much to ask of anyone.
Our independent farmers do not want a hand-out; rather they want an even playing field with access to the world market and fair prices for their products. Can Trump’s assertions of concern for the heartland be seen as anything but an insults to our independent farmers when he has given more than $62 million in farm aid to JBS, a Brazilian owned company. JBS is the world’s largest meatpacker, with over 100 operations in the U.S., Mexico, Canada and other countries. Therefore, not only does JBS get unneeded bail-out money, the trade war has increased their sales to China while American owned operations lose sales. (New York Daily News; May 16, 2019 By Chris Sommerfeldt ; https://www.nydailynews.com/news/politics/ny-trump-administration-bailout-farmers-brazilian-criminals-20190516-6rdb3ithvfec7fttem7qrny54y-story.html)
Do we really want our tax dollars adding to the profits of two Brazilian brothers with a well-known history of illegal activities, who are now under investigation for violating U.S. anti-corruption laws and the Foreign Corrupt Practices Act? According to Agriculture Secretary Sonny Perdue there is nothing irregular in providing aid to JBS because it is the parent company to several American based operations that buy livestock from American farmers. He…” insists that USDA aid would not benefit the Batistas.” He compares JBS to Volkswagen, and other foreign automobile companies, saying …” their executives may have been guilty of some issue along the way…This helps US farmers by supporting prices.” (The Hill, by Sylvan Lane, 05/27/19 08:30 am edt; https://thehill.com/policy/finance/445508-brazilian-firm-draws-scrutiny-on-trump-farm-aid
There is pushback from Democrats and some of the GOP who recognize our family farmers should be receiving meaningful USDA aid to survive the crisis. So, the question remains, who will look out for the independent family farm? Why don’t we see Sens. Grassley and Ernst beating down the doors over this? Where has the Des Moines Register been? Our money is being given to foreign corporations that are profiting in increased sales due to the trade war! This should have been front page news! In fairness, Sen. Grassley was part of an effort that made Smithfield, a Chinese owned company, return approximately $24 thousand in aid. It’s a start, but not enough.
It’s up to us to advocate for our farmers. If we, as citizens, don’t become active and make our voices heard in support of the family farm, who will? Shipping profits and market power to foreign companies, and large agricultural corporations, is a losing policy that is devastating not only to family farms, but to rural communities and our country as a whole.
We have a shared history with our farmers. Towns grew up around farms; farms did not grow up from cities. As our country grew some of those towns grew into big cities, and some into commercial hubs. We have a shared a destiny with our family farms. Do we really want to lose them?