final paper

Federal subsidies work in the favor for the rich and not the poor farmers. Federal subside policies are simply putting taxpayers money into greedy politician’s hands. The majority of farmer’s household income is well above average. Federal subside policies is a form of capitalism in the United States of America.
The United States hands out $10 billion to $30 billion dollars to farmers and farmland owners every year. Farmers who grow crop like corn, rice, cotton and wheat receive 90% of agriculture subsidies (Edwards, June 2009) Farm subsidies payments aren’t being equally distribute among all farms. Farms are not determined by income, it’s determined by crops. The other 400 domestic crops get nothing from the federal subsidies program.
Family farmers are getting 19% of farm subsidies, but share among 80% of farmers.
The federal subside payments are for farmers or farmland owners in the need of assistance, major disaster, and equipment. The word assistance is used very loosely because smaller farms aren’t being assisted. Smaller farms can’t complete in the same playing field against bigger farm owners. Smaller farms don’t have the modern practices of technology. Farms with more advanced technology have better machinery, faster techniques, and educated marketing consultants. Smaller farms can’t produce the same amount of crops quickly enough to gain an advance. The smaller farm owners are receiving federal subside payments, but the checks are barely helping small farms stay in business. Smaller farm owners are force to buy more land, it will cost farm owner around $4000 to $5000 dollars an acre. ‘’ If the purpose of farm policy was to save the family farm and help stabilize rural communities, then it hasn’t worked,’’ Oswald said. ‘’ What the government is really doing is subsidizing land and assets, and not people.’’(Gaul, December 2006)
Smaller farm owners end up owning more money than profiting for themselves. Smaller farms are being charged higher rent because farm owners know they can profit more money from federal subside payments.’’ As soon as they figured they could take the payments, they said I don’t need you anymore, he said. They were renting me land for $40 an acre, but they could get $125 an acre from the government.’’(Gaul, December 2006) Federal subside payments are for farmer who need financial assistance however you do not need to be a farmer. In order to receive federal subside payment you must own the land but don’t have to grow any crop on the land. If you are farm owner with ten acres or more you can qualify for payments from the government. The only stipulation to receiving the payments is leaving the 9 acres of farm land as is but can do what ever you want with acre of land. There are many people receiving thousand of dollars for just owning land. This money should be going to farmer in need of aid, who really grow crop in there backyard. ‘’n 2004, the property was sold to shin Shan Chu, an elderly investor who lives in Vancouver, Canada. Once a year, bailey, who still grows rice on part of the 4,000 acres, cuts a $25,000 dollar check and send it to chu, whom he has met.’’(Gaul, December 2006) Apparently checks are being given to people who never step foot on America soil but is receiving payments. It’s evident where these federal subsided payments are going to, but nothing is being done about it.
On average taxpayers waste $20,000 dollars per household on federal subsides. Instead of the money going to small farmers, it’s being given to larger farms, politicians, and celebrity. Taxpayer’s money is being given to the rich and not to the poor. Farmer’s income is much higher than the average households. The farmers income is broken is three barracks higher income, greater wealth and lower consumption expenditures. The higher income average for farm household is $64,437 dollars. The average income for non farm household is $54,842 dollars. For greater wealth income average for farm household is $563,563 dollars. The average income for non farm household is $88,000 dollars. The lower consumption expenditures income average for farm household is $25,073 dollars. The average income for non farm household is less than $11,000 dollars. (Riedl, May, 2004)

This chart show large farms with higher income received higher federal subside payments. These large farms are owned by multimillion dollar companies’ like John Hancock, mutual life insurance, and chevron. The members of the agriculture committee are even taking a piece of the pie. These members of the agriculture committee are the one who granted the farm subsidies law. Lawmaker are benefiting from the laws they created. Even celebrities like Scottie Pippen, Ted turner, and David Rockefeller gain trembles amount of money from this farm bill. The farm bill is helping the wrong type of people who already have millions of dollar. It’s quite frank the rich and famous are reaping the benefits. The family farmer and taxpayers are the ones who are paying dearly for this farm bill and nothing will be done about it. If the federal subside bill was used according to the way it was projected to be then taxpayers would save billions of dollars.
Instead farm subsidy is damaging the economy with long term affect. This debt bought upon the United States of America will destroy the value of our currency. The value of dollar is going to worth less. If the value of the dollar is worth less, it will cause inflation. The America people will end up paying more for services and goods to cover cost. The lower class and middle class will end up paying this heft fee. When the higher class just raises price or created a non sense bill to take all the money in the world.
In conclusion this is called capitalism at its best. The system is created to keep the rich on top and the poor in the bottom. Its crystal clear how the world works, money equals power.