"Loosening the reins" / Straight Talk by Martha Stevens - Rural America / In Motion Magazine

Martha Stevens is livestock farmer who lives and farms near Hatfield, Missouri. This article is part of an ongoing series by Martha Stevens - Straight Talk - commenting on the life and politics of farming in Missouri and the U.S. as a whole.

By now, we’ve all heard the stories about the $8.7 billion agricultural assistance program enacted by "the good old boys" in D.C. What everyone probably doesn’t know is how that legislation, supposedly to keep small family farmers "down on the farm" through a period of financial upheaval, has been changed to such an extent that the biggest get the mostest -- again.

With the new amended rules regarding the emergency aid package, one farm could claim up to $460,000 a year while creating a new method for circumventing even that astronomical limit.

The limit, if you could call it that, is now high enough to enable a 6,000 acre plus grain farm to reap the benefits of a subsidy plan that was originally written to keep the average 500 acre family farm venture from bankruptcy or foreclosure.

Unfortunately it is my sad duty to inform the small farmers of this area that they have, once again, been sold down the river by some of their very own farm organizations. Those organizations rationalize their push for loosening the reins on the program by noting that all sizes of operations are being hurt by low prices, not just small family farms.

Current law provides for a limit of $75,000 in subsidy payments and $40,000 in market transition payments per year--a payment of which most family farmers only dream. But many of the large operations, primarily in the southern part of the country, are receiving much more through a loophole (more like the bottomless pit!) slipped in without notice by a friend of the megas.

This "hole" allows a farm to be divided into different entities, allowing both husband and wife (and possibly children) to file separately. Some farms can avoid restrictions on subsidies entirely by permitting the USDA to issue certificates for government-held commodities in lieu of cash. The holder of these certificates is not subject to payment limits. This little special interest provision primarily benefits cotton growers and was written into the bill by Sen. Thad Cochran, (R-Miss) at the specific request of cotton producers.

Chuck Hassebrook, program director for the Center for Rural Affairs says this loosening of the rules is just another way of providing the mega operations with cash needed to buy more land and tighten their grip on the agriculture community.

Everyone’s getting in on the act. The Federal Reserve has developed their own "study" of the rural economy. They have determined that -- SURPRISE! -- low prices are the cause of the farm problem! While wheat brings about the same price as it did in 1940, tractor prices swelled from $1,500 to $150,000. This, they say is what led to the "supply chain revolution" and vertical integration that leaves independent farmers out of production, sales, and decision making. Economists say that 40 or fewer chains will likely control virtually all pork production very soon and dominate other crops and livestock as well.

Terry Nemechek, loan officer with Farm Credit says he is concerned about the trend. "Is that the future of farming? Being a hired man for ConAgra or Cargill or some other huge company?"

I would pose this question to Mr. Nemechek: If Farm Credit is so concerned with the vertical integration problem, why is it that that agency continues to be a major lender to those large operations? Why is Farm Credit loaning millions of $$$ to the Gieman’s and DeCoster’s of this country to construct their mega facilities, thereby assisting the very vertical integration/consolidation of which he claims such a concern?

Today’s Quote: "It is a sorry state of affairs when we’re short of money to help family farms that you have some large producers getting $460,000"--Sen. Byron Dorgan, D-North Dakota