Farm Spending a ‘Whipping Boy'

June 1, 2001

Bob Stallman, president, American Farm Bureau Federation, believes farm program spending "increasingly has become a misunderstood whipping boy." Critics, says Stallman, want to know what makes farm families different from owners of small businesses who don't receive public financial support.

"The answer is," says Stallman, "that a family-based ownership structure is the only common thread shared by these aforementioned enterprises. Farming always has been an altogether different animal. In spite of farmers' best efforts to manage natural and financial risk, they often see their bottom lines blasted by weather disasters, the crash-and-recover uncertainty of international economics and the whimsy of domestic regulatory mandates. Each can take a painful bite off the top of an already-slim profit margin."

Unlike a hardware or grocery store, most farmers involved in the production of commodities cannot pass unexpected business expenses or losses along to consumers, Stallman explains in his monthly column on the AFBF web site. "Compounding farmers' overall inability to set prices is the recent trend toward consolidation and concentration among agribusiness companies that buy farm commodities, which further trims competition and opportunity in the marketplace."

Greater economic stability for agriculture is an important public policy goal, he adds. "It is not an exaggeration to call our farm policy an issue of national security. America's farmers provide food security for this nation and much of the rest of the world. On average, America's consumers spend just 10% of their disposable personal incomes for food – lower than any other nation on the planet. That leaves the bulk of personal income available for purchasing the items that bring quality to American life. Food security forms the foundation of a culture's prosperity and social stability, and that's a priceless farm program dividend."

Additionally, taxpayer support for farmers is "an investment in people who care for most of our nation's land and water resources. Keeping farmers on the land ensures the presence of dedicated and motivated caretakers. A farmer's livelihood and those of his future generations depend on the viability of a farm's land and water resources. It's a proven fact that farmers respond to incentive-based conservation programs funded by the agriculture budget," according to Stallman.