Download the full Policy Brief

Key Findings

1. Renewed about every five years, the federal Farm Bill is broad legislation that re-authorizes multiple government programs, including commodity payments, crop insurance subsidies, conservation, energy, trade, rural investment, food programs, and research.
    
2. Today, over 76 percent of Farm Bill funding goes towards the federal nutrition program (Food Stamps) and 23 percent is allocated to the farm income safety net (commodity payments, crop insurance, and conservation). Less than one percent of funding is used to fund the other programs, many of which are vital to Washington state agriculture, like research and trade promotion. 
    
3. Overall, the majority of farms (62 percent) in the U.S. do not take federal subsidy payments. In Washington state, 83% of farmers do not take subsidy payments.  
    
4. Small family farms benefit the least from government subsidies; a small number of larger producers tend to benefit most.
    
5. Subsidy payments encourage farm consolidation and increase land costs, making it more difficult for young farmers to get started. 
    
6. Congress should shift the federal farm program to priorities that directly aid all Washington state farmers, by investing more in research and development, and by improving trade access for Washington-grown crops. 
    

Introduction

Any conversation about the Farm Bill is complicated for American farmers. Since its inception, the federal subsidy program has created a network of operating rules designed primarily to control food prices while also providing a level of protection for farm income.

Political support for reducing farm subsidies is limited because farmers face pressures from the global market, foreign subsidies, trade barriers, and their vulnerable position as price-takers. The current system, however, relies on the unpredictable and cash-strapped resources of federal taxpayers, which risks undermining the financial stability of farmers.  

This existing federal policy is not the best option for Washington state farmers, because it favors a handful of commodities and large farms. As a diverse farming and trade dependent state, most Washington farmers would be better off if Congress shifted federal support to research and trade, rather than farm subsidies.

This paper briefly reviews existing federal farm programs, presents statistics regarding distribution of benefits nationally and in Washington state, highlights unintended consequences of the proposed farm bill, and identifies needed policy improvements that should be included in future federal Farm Bills. 

 Download the full Policy Brief