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Froma Harrop
NationofChange / Op-Ed
Published: Tuesday 31 July 2012
“Drought is no foreigner to America’s midsection. Conditions were reportedly worse in the 1950s and, of course, the Dust Bowl years of the ’30s.”

Drought Nation Heads for Dry Federal Well

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As three-digit temps broil the sidewalks through late afternoon, one walks alone in this charming Nebraska panhandle city. These days, Chadron seems more pan than handle. The only thing breaking the silence is the nearly daily siren summoning local firefighters to a conflagration in the grass and brush countryside. Its source is usually easy to locate. Smoke clouds stand out in the big sky.

As severe drought helps unleash fires in large parts of the vast and beautiful High Plains, its rural economy looks to Washington for help. Despite their claims of self-reliance, many inhabitants here and elsewhere in the agricultural heartland have little love for the free market. Now they are trying to drink at a federal well that has itself been drained by a weak economy and tax cuts. One can understand why the five-year farm bill will probably go nowhere until after the election.

In truth, the farm subsidy programs were controversial even in the flush days. Farmers who otherwise embraced conservative small-government politics were pained by or ignored the contradiction of their dependence on taxpayers.

And taxpayers have been well tapped. They cover on average 62 percent of the farmers' insurance premiums. In tough years, when payouts explode, the taxpayers, not the insurance companies, bear the brunt of the costs, notes Iowa State University economist Bruce Babcock.

The most beloved subsidies are the "revenue protection" policies tying payments to the harvest price of the crop rather than the price it was insured at. Because the drought has driven prices higher, farmers may do better than they would have with adequate rain. Thus, corn growers with access to groundwater enjoy high crop prices. Competitors looking to the skies for water lose their crops but not money, thanks to Washington.

There are no losers here.

Politicians supporting such policies hearken to the struggling family farm, but when it comes to farm policy, a few things should be noted. Only 38 percent of American farms receive subsidies, mainly those growing grains and cotton. California's famous fruit and vegetable empire, for example, gets relatively little help from Washington. But the state's cotton and rice growers, while accounting for less than 3 percent of the agricultural output, reap 44 percent of its federal crop subsidies, according to the Environmental Working Group.

It is commonly known that these subsidized farms are getting bigger, and the biggest taxpayer subsidies go to the richest few. Hundreds of subsidy checks go to absentee landowners in New York City. Members of Congress personally collected $6.1 million from 1995 to 2011.

Both the House and Senate agree on ending direct cash payments to farmers, at a savings of $5 billion. But some in Congress want to replace it with insurance programs that make the old spending look shabby by comparison. Notably outrageous is the Lucas-Peterson bill, named for Reps. Frank Lucas, R-Okla., and Collin Peterson, D-Minn. It would expand crop insurance subsidies by another $9 billion. Labeling it a "Soviet-style" proposal, House Speaker John Boehner, R-Ohio, swept it aside.

Ideological differences among Republicans are apparently holding up the legislation, and that is a good thing. Reforms will be easier to make after the election. Babcock thinks they can save $42 billion over 10 years.

One other thought for policymakers. Drought is no foreigner to America's midsection. Conditions were reportedly worse in the 1950s and, of course, the Dust Bowl years of the '30s. But this one is up there, and if climate change is as real as it looks, things will get worse, as higher temperatures evaporate more of what water there is. How long can water-deprived regions rely on a federal well that is itself running dry?

Copyright Creators.com


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ABOUT Froma Harrop
Froma Harrop’s nationally syndicated column appears in over 150 newspapers, including The Dallas Morning News, Houston Chronicle, Seattle Times, Denver Post and Newsday. The twice-a-week column is distributed by Creators Syndicate, in Los Angeles. Harrop has written for numerous other publications, ranging from The New York Times and Institutional Investor, to Harper’s Bazaar and Metropolitan Home. Previously, she covered business for Reuters Ltd., in New York, and was a financial editor for The New York Times News Service. A Loeb Award finalist for economic commentary, Harrop was also honored by the National Society of Newspaper Columnists. Over the years, the New England Associated Press News Executives Association has named her for five awards.

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4 comments on "Drought Nation Heads for Dry Federal Well"

bcbossarte's picture
bcbossarte

August 01, 2012 10:02am

When you start looking at the sky AND analyzing what is happening with the artificial clouds that are being formed maybe you will finally realize that the weather conditions are being manipulated. Geo-engineering is taking place, it is real. Droughts, floods, even earthquakes are manipulated with the technology that is being used today. Why? a.Big money is being made by a select few in hedge betting on the weather and the conditions it brings. b. Control the agriculture and you control the population-Gate's foundation and Monsanto.
This is much bigger than another crooked politician on the take.
Focus on they bigger picture and you'll see why things that don't make sense individually, really do when you grasp the bigger picture.
When you actually start to see the planes laying the white lines that spread out into one another, it is not a conspiracy, you can see it for yourself. Don't let them make you think you aren't seeing something that is unnatural. We had planes spraying white lines here almost every day for 12 weeks and never saw the sun except through a haze. No planes for the last 2 weeks and beautiful blue skies and sun.... Research yourself, but not wikipedia as it is owned by Murdock...

jeltez42

July 31, 2012 7:19pm

Surely, I did not read the part mentioning the crop insurance correctly. Surely the insurance companies are paying the losses, not the Feds. It is a bad enough scam under normal insurance rules, now add that if I insure my crop for a yield of $6 a bushel at planting time and THEN get an insurance payout of $7 a bushel at harvest. No wonder taxpayers are footing the bill.

I have been around farmng all of my life. It is hard work and it takes a lot of luck and faith. I do not begrudge the family farmers anything, they earn their money. Many that I know have a day job or two to make ends meet even in good years. It is the corporate farms and the private investors that never see their land that I have issues with. And with government subsidies paying out $260,000 or so to Michelle Bachmann's farm in 2011 that's a pretty good payday. Yet, who is screaming to end welfare payments and screaming that we need to fire the socialist in the White House, yep, Michelle Bachmann. I can just imagine how much she would scream when there is no socialist welfare check (aka farm subsidy) in her mailbox in Nov/Dec.

Jeffrey Hill

July 31, 2012 10:27am

Those red Republican states in the Great Plains are all against "socialism" (like farm subsides, federal crop insurance, etc.) except when they benefit financially from it, the hypocrites.

Whitemellon

July 31, 2012 3:04pm

They are only against socialism if it's for someone else that needs help. If its for their lively hood they consider it just helping job creators.