May 13, 2011 | By Roger Thurow

Something to Cut

With many words in this column, we have discussed what not to cut from the federal budget.  Namely, administration requests to fund agriculture development, especially in Africa, under the Feed the Future initiative and the Global Agriculture Food Security Program.

Now, a word – just a single word — on what to cut.  Subsidies.

Not all the agriculture subsidies, especially those that help keep smaller farmers afloat or help maintain our food security.  But those billions of dollars in subsidies that end up in the hands of people who never get soil under their fingernails (but may own a piece of land eligible for the payments) or in the coffers of corporate farms – mainly those who don’t need the taxpayer-funded subsidies to spur greater production – or in the accounts of an ethanol industry that turns some 40% of the U.S. corn crop into fuel for cars while the world faces the looming challenge of nearly doubling food production by 2050 to meet the demand of a growing population and the growing prosperity of that population.

For decades, the ever-expanding agriculture subsidy programs of the U.S. and Europe have constituted one of the supreme hypocrisies of geopolitics and world trade.  As their subsidies grew, the rich world countries, and the international development agencies they control, were directing African governments, for the sake of fiscal austerity, to get out of agriculture and to stop subsidizing their farmers.  This created a huge imbalance in the global trade of agriculture goods; subsidized farmers were cushioned from the impact of falling commodity prices, while the unsubsidized farmers in the poorer precincts of the world suffered mightily from declining prices if their products, like cotton, were sold on the world market.  The result was that the farmers of Africa were left tilling terribly uneven plowing fields; they were left to fend for themselves in a global trading system increasingly tilted against them.

The subsidy schemes in both the U.S. and Europe had been initiated with good intentions during times of much poverty and desperation, especially for farming communities.  But, as Scott Kilman and I wrote in the book Enough: Why the World’s Poorest Starve in an Age of Plenty:

“Over the years (the subsidies) became entrenched.  The political will to scale them back grew ever dimmer as farmers became wealthier relative to the rest of society and better able to finance powerful lobbies in Washington.  In fact, although America and Europe were tight allies in the arms race with the Soviet Union, they furiously battled each other in an escalating farms race by subsidizing the prices that foreign customers paid for commodities such as wheat.”

The American subsidy payments were fiercely defended by the agriculture lobby during negotiations over the Farm Bill, which became the best example of Darwinian evolution in legislation.  Nothing could kill it, or even pry it open for reform.

In the battle over the 2008 Farm Bill, a number of organizations from across the political, religious and humanitarian spectrums formed the Alliance for Sensible Agriculture Policies to campaign against the subsidy system.  It looked like they were making progress, even winning converts in the Farm Belt, but in the end they were badly outgunned.

From Enough:

“The Farm Bill that was finally enacted in June 2008 had 672 pages, 60% more than the 2002 Farm Bill.  According to Congressional Budget Office forecasts, the federal government will spend about $104.2 billion during the life of the five-year bill on programs that put money into the bank accounts of farmers.  The amount covers everything from crop-price support payments to land idling checks to crop insurance subsidies.”

But now, as negotiations over the fiscal 2012 budget heat up and the parameters for a new Farm Bill are shaped, some members of Congress are saying that subsidies shouldn’t escape the budget-cutting scrutiny, that some tightening and reform should be considered.  “We shouldn’t be giving corporate farms, these large agribusiness companies, subsidies.  I strongly believe that,” Representative Paul Ryan, the chairman of the House Budget Committee, told a gathering of reporters last week.

Even some farm groups acknowledge that the time is ripe for a recalibration of subsidies.  With prices of many staple commodities rising to a higher plateau, and with farm incomes up, the need for price support fades.  And many farmers have been supporters of Congressional candidates clamoring for overall budget cuts and debt ceilings.  Also, the impact on farmers in the developing world is being better understood; if those farmers are to contribute to the doubling of food production in coming decades, they need incentives to produce surpluses, which means level plowing fields in the global trading system.

Still, the budget warfare will be fierce.  As we quoted an official of a subsidy watchdog group in Enough: “The staying power of subsidies is remarkable.”

Archive

| By Roger Thurow

A Wondrous Journey

Cruising down I-80 in the summer is one of the most wondrous, and paradoxical, drives in the country.


| By Roger Thurow

1,000 Days and Migrant Stress

The first 1,000 days of a child's life is a critical time for development, where nutrition--and stability--lay the foundation for a lifetime. 



| By Roger Thurow

Outrage and Inspire with Roger Thurow - Am I About to Lose My Second Child, Too?

The latest podcast in our ongoing series with Roger Thurow. Hear how even the best nutrition projects can be undermined by bad water, poor sanitation and hygiene, and lousy infrastructure.  From northern Uganda, we hear a mother’s agony when her healthy, robust child suddenly falls ill after a few sips of water…unclean water, it turned out.











Roger Thurow on SDG 2.2

Roger Thurow sat down with Farming First to talk about the individual and societal consequences of malnutrition. 



Multimedia

Videos


 


Digital Preview of The First 1,000 Days

In his new book, The First 1,000 Days, Council senior fellow Roger Thurow illuminates the 1,000 Days initiative to end early childhood malnutrition through the compelling stories of new mothers in Uganda, India, Guatemala, and Chicago. Get a first-look at photos and stories from the book in this new web interactive.

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» Order your copy of the book.

Books

The First 1,000 Days

Roger Thurow’s book will tell the story of the vital importance of proper nutrition and health care in the 1,000 days window from the beginning of a woman’s pregnancy to her child’s second birthday.

The 1,000 days period is the crucial period of development, when malnutrition can have severe life-long impacts on the individual, the family and society as a whole. Nutritional deficiencies that occur during this time are often overlooked, resulting in a hidden hunger. It is a problem of great human and economic dimensions, impacting rich and poor countries alike.

Learn more »

The Last Hunger Season

In The Last Hunger Season, the intimate dramas of the farmers' lives unfold amidst growing awareness that to feed the world's growing population, food production must double by 2050. How will the farmers, Africa, and a hungrier world deal with issues of water usage, land ownership, foreign investment, corruption, GMO's, the changing role of women, and the politics of foreign aid?

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EnoughEnough

Roger Thurow and Scott Kilman, award-winning writers on Africa, development, and agriculture, see famine as the result of bad policies spanning the political spectrum. In this compelling investigative narrative, they explain through vivid human stories how the agricultural revolutions that transformed Asia and Latin America stopped short in Africa, and how our sometimes well-intentioned strategies—alternating with ignorance and neglect—have conspired to keep the world’s poorest people hungry and unable to feed themselves.

Learn more »