America's Soviet Farm Policy

Ever wonder why it is so much easier to get fresh fruit and veggies when you travel in Europe? Ever wonder why tomatoes are either mealy or get to you via some huge carbon footprint from The Netherlands or from some fetid field in Mexico or elsewhere? Well, for someone who has the eating habits of a Birkenstock wear'n (hey, I do have 4 pairs) Kerry voter - I thought this bit from the NYT by Jack Hedin is a nice intro for those who don't to the nightmare that is farming in the US. We have little room to make fun of the EU.

Last year, knowing that my own 100 acres wouldn’t be enough to meet demand, I rented 25 acres on two nearby corn farms. I plowed under the alfalfa hay that was established there, and planted watermelons, tomatoes and vegetables for natural-food stores and a community-supported agriculture program.

All went well until early July. That’s when the two landowners discovered that there was a problem with the local office of the Farm Service Administration, the Agriculture Department branch that runs the commodity farm program, and it was going to be expensive to fix.

The commodity farm program effectively forbids farmers who usually grow corn or the other four federally subsidized commodity crops (soybeans, rice, wheat and cotton) from trying fruit and vegetables. Because my watermelons and tomatoes had been planted on “corn base” acres, the Farm Service said, my landlords were out of compliance with the commodity program.

I’ve discovered that typically, a farmer who grows the forbidden fruits and vegetables on corn acreage not only has to give up his subsidy for the year on that acreage, he is also penalized the market value of the illicit crop, and runs the risk that those acres will be permanently ineligible for any subsidies in the future. (The penalties apply only to fruits and vegetables — if the farmer decides to grow another commodity crop, or even nothing at all, there’s no problem.)

...and why ....

In my case, that meant I paid my landlords $8,771 — for one season alone! And this was in a year when the high price of grain meant that only one of the government’s three crop-support programs was in effect; the total bill might be much worse in the future.

In addition, the bureaucratic entanglements that these two farmers faced at the Farm Service office were substantial. The federal farm program is making it next to impossible for farmers to rent land to me to grow fresh organic vegetables.

Why? Because national fruit and vegetable growers based in California, Florida and Texas fear competition from regional producers like myself. Through their control of Congressional delegations from those states, they have been able to virtually monopolize the country’s fresh produce markets.

That’s unfortunate, because small producers will have to expand on a significant scale across the nation if local foods are to continue to enter the mainstream as the public demands. My problems are just the tip of the iceberg.

Last year, Midwestern lawmakers proposed an amendment to the farm bill that would provide some farmers, though only those who supply processors, with some relief from the penalties that I’ve faced — for example, a soybean farmer who wanted to grow tomatoes would give up his usual subsidy on those acres but suffer none of the other penalties. However, the Congressional delegations from the big produce states made the death of what is known as Farm Flex their highest farm bill priority, and so it appears to be going nowhere, except perhaps as a tiny pilot program.

Who pays the price for this senselessness? Certainly I do, as a Midwestern vegetable farmer. But anyone trying to do what I do on, say, wheat acreage in the Dakotas, or rice acreage in Arkansas would face the same penalties. Local and regional fruit and vegetable production will languish anywhere that the commodity program has influence.

Ultimately of course, it is the consumer who will pay the greatest price for this — whether it is in the form of higher prices I will have to charge to absorb the government’s fines, or in the form of less access to the kind of fresh, local produce that the country is crying out for.

Farmers need the choice of what to plant on their farms, and consumers need more farms like mine producing high-quality fresh fruits and vegetables to meet increasing demand from local markets — without the federal government actively discouraging them.

Your tax dollars at work - serf.