The 2023 farm bill should eliminate wasteful subsidies to the biggest farmers and landowners in favor of programs that reach more producers at a lower cost, said a coalition of budget hawks, a consumer group and a small-farm advocacy organization in a letter to lawmakers on Tuesday.
The letter “represents an emerging consensus” to pursue a resilient farm sector “through the adoption of proven conservation and soil health practices, rather than continue to fuel dependence on federal farm subsidies,” said the National Sustainable Agriculture Coalition (NSAC).
“U.S. food and agriculture policies are in need of reform,” said the coalition letter, which called for caps on crop insurance subsidies and stringent limits on who can collect farm subsidies and how much they get. “Unlimited subsidies cannot continue to be concentrated in the hands of certain individuals and the largest landowners and operations at the expense of most farmers, consumers, taxpayers and the environment.”
There are “numerous opportunities” to reduce the cost of the farm bill while producing more results, said the letter signed by R Street Institute, a free-market think tank; Taxpayers for Common Sense, a budget watchdog; US PIRG, a consumer group; and NSAC. “This includes prioritizing programs proven to reach more producers at lower cost to taxpayers, such as research, education, extension services and technical assistance.”
Only a fraction of American farmers receive commodity payments, which are based on volume of production, so large operators get the biggest checks. The coalition said the large payments encourage farm consolidation, drive up farmland prices and encourage production of subsidized crops.
In contrast to the coalition’s goals, farm groups generally have called for higher reference prices, a key factor in calculating subsidies, and a “strong” crop insurance program.
The letter to lawmakers is available here.