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The Time to End Agriculture Dependency is Now

Despite the electoral failures of the past two presidential elections, we can still take solace in the fact that there are more red states than blue states; more red districts than blue districts.  Hence, there are more parts of the country where people are intuitively suspicious of a large federal government than where there are people who are overtly appreciative of the federal leviathan.  So why is it that there are only a small group of elected officials who are committed to significantly shrinking the size of the federal government?

Creating dependency is the catalyst for cementing a long-term coalition of big government statists.  Most people think of big urban states and cities when discussing the politics of dependency and special interests; however, the red states have their own share of parochial interests.  Any region or constituency can be fertile ground for creating dependency on the federal government, no matter how innately they are predisposition to hate the federal government.  It is not hard for a selfish politician to raise the specter of government involvement in a local interest and perpetuate the expectation that government will permanently foster that interest.

Nowhere is this phenomenon of red state dependency more evident than in the Agriculture community.  Farmers are naturally hard workers who believe in rugged individualism.  But self-centered politicians representing these districts have worked in tandem with local parochial interests to ensure that the people of some of our most conservative districts are only represented by supporters of big-government dependency and special-interest politics.  In order to secure an endless flow of farm subsidies (or energy subsidies), these politicians have often teamed up with other special interests in Congress to help grow all sectors of government.  Hence, we have some of the most conservative districts being represented by members who help promote the greatest common factor of all spending bills.

If there is any hope of ever growing our minority of limited-government constitutional conservatives, we must begin by breaking the cycle of dependency in the red states, particularly the Agriculture communities – places where people are instinctively receptive to a limited government message.  There is no better time to begin weaning the Ag community off of the federal government than now.  With crop commodities near record highs, farm income is at a 40-year high, despite the severe drought last summer.  Amazingly, a major factor in robust farm income is the crop insurance program, which has bestowed its recipients with record high indemnities.  Now is the time to pull the plug on these market distorting subsidies.

It’s time to elect principled conservatives who are willing to stand up to the special interests who promote subsidies, ethanol mandates, and wind handouts, and preach free market values directly to their constituents.  Remember that farm subsidies overwhelmingly benefit large profitable farms over small family farms.  Farm subsidies and crop insurance programs help promote income inequality in farming by offering larger subsidies to those who already have larger farms.  These farmers can enjoy multimillion dollar insurance policies that are subsidized in order to guarantee their multimillion dollar investments that would otherwise not be supported by the free market.  Also, federal guarantees of bankers’ loans to rich farmers have further increased their borrowing capacity, thereby driving up the cost of land acquisition.  This, in turn, has shut out small farmers from the business, making it nearly impossible for them to compete.

If Republicans want to stand up for agriculture interests in red America, they should commit to ending the Death Tax and fighting all the EPA and labor regulations that hurt farmers.  There is no constituency that will reject a handout when it is offered for free, but farmers understand that government intervention is not free.  If their representatives would promise to reduce taxation and regulation, most farmers, sans the special interest leaders, would be willing to forgo the subsidization.

Last year, Jim Bridenstine (OK-1) provided the roadmap for a red state resurgence of free-market populism.  He defeated the lead sponsor of T. Boone Pickens NatGas subsidy bill in the birthplace of T. Boone Pickens and the home of Chesapeake Energy Corp.  Despite boldly declaring that “we ought not let Washington, D.C., control free markets with tax subsidies,” Bridenstine upset a 10-year veteran by 7 points.

It’s high time we elect farm state representatives who respect the free market, small farmers, and consumers.  It would be nice to find replacements for Rick Crawford (AR-1), Jeff Fortenberry (NE-1), Mike Simpson (ID-2), Frank Lucas (OK-3) – just to name a few.   We also have some great opportunities with competitive or open Senate seats in South Dakota, Nebraska, and Arkansas.   With decades’ worth of direct subsidies, crop insurance, conservation subsidies, marketing loans, disaster aid, trade barriers, commodity price supports, and production controls, we all understand that the entire structure of farm dependency will not end overnight.  But that must be the ultimate goal for conservatives.  We have no other choice.

Cross-posted from The Madison Project

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COMMENTS

  • slicksleddog

    I couldn’t agree more with this piece, but changing the climate in farm states is not going to be easy. During last year’s campaign I watched the debates in the Montana and North Dakota Senate races. The Farm Bill seemed to be the most important issue in both races — who thought the Farm Bill was a higher priority, who was more to blame for the Farm Bill not getting passed, who would do a better job getting the Farm Bill passed. It was amazing to someone in a state (Ohio) where this never even rates a mention.

  • Finrod

    It’s important for Republicans to be consistent and advocate against big government and government funding and regulation, even government subsidies for our own constituencies.

  • keepcoolwithcoolidge

    I hate farm subsidies. There may be a need for a transition to market pricing mechanisms though. Maybe eliminate all methods of payment except crop insurance and then set shallow loss coverage at like 15% of a past market price average. Use this for a few years and then either try to replicate crop insurance in the private market or sell the coverage policies to a private group.

  • eltuba

    Are you a farmer?

  • freemanja1991

    Wow picking on crop insurance? How would Farmers make a living if there are floods or crops are destroyed?

  • http://www.skycorpinc.com denniswingo

    Great article, agree totally. If we free the American farmer we can feed the world and be the OPEC of food.

  • GreyCloak

    We once WERE the “OPEC” of food, but to defeat OPEC, we started burning our corn. It’s called ethanol, and all the subsidies that spring from it.

  • GreyCloak

    Floods destroy our family-owned (over 150 years) farm’s crops every six or seven years. The premiums pay for the loss. Forty acres in the land bank (pay for not growing) is a subsidy, but pays a few bills. Renting out the farm house pays the taxes. BEFORE expenses, an acre of corn yields about $800, soybeans $1,300, but you have to rotate those two crops and soybeans aren’t as hardy as corn.

    In the Spring, you have to pay for seed, plowing, planting, fertilizer, and weed control. Come May, the river may flood or not, and wipe out your crop. All Summer long, you have to watch for bugs, weeds, and pestilence. If you’re lucky, your harvest won’t have too high a water content or be totally prevented by late-season thunderstorms or tornadoes. So you get a big check, pay off your creditors, and hope the proceeds will cover the annual mortgage payment and leave you enough to live on the rest of the year.

  • GreyCloak

    See above. Crop/flood insurance should pay for itself; it’s insurance! Once upon a time, farmers were “granted” land by the Federal Government. All you had to do was build a home and make the land productive. Most grants were for 160 acres, some for as many as 640 acres (a “section” of a square mile). a simple solution would be to limit crop and flood insurance on any size farm so that annual premiums would cover expected costs based on an actuarial baseline of thirty or forty years’ experience, and limit “subsidies” for any family or corporation and its subsidiaries to only the first section or quarter-section of their holdings.

    I hate to refer to ancient documents, but “there will be seven years of bounty and seven years of famine” [paraphrased] has pretty much held true for a few thousand years, and the first head (guy named Joseph) of a Department of Agriculture got it right.

  • http://www.skycorpinc.com denniswingo

    For the last three months our oil production has surpassed that of Saudi Arabia. We don’t need to burn corn for fuel.