American food policy has long been rife with head-scratching illogic. We spend billions every year on farm subsidies, many of which help wealthy commercial operations to plant more crops than we need. The glut depresses world crop prices, harming farmers in developing countries. Meanwhile, millions of Americans live tenuously close to hunger, which is barely kept at bay by a food stamp program that gives most beneficiaries just a little more than $4 a day. (...)
The House has proposed cutting food stamp benefits by $40 billion over 10 years — that’s on top of $5 billion in cuts that already came into effect this month with the expiration of increases to the food stamp program that were included in the 2009 stimulus law. Meanwhile, House Republicans appear satisfied to allow farm subsidies, which totaled some $14.9 billion last year, to continue apace. Republican proposals would shift government assistance from direct payments — paid at a set rate to farmers every year to encourage them to keep growing particular crops, regardless of market fluctuations — to crop insurance premium subsidies. But this is unlikely to be any cheaper. Worse, unlike direct payments, the insurance premium subsidies carry no income limit for the farmers who would receive this form of largess. (...)
It is, of course, no surprise that with the high level of poverty millions of Americans have had to turn to the government to meet the basic necessities of life. And those numbers increased drastically with the onset of the Great Recession. The number of Americans on food stamps went up by more than 80 percent between 2007 and 2013.
To say that most of these Americans are technically poor only begins to get at the depth of their need. In 2012, for example, two in five SNAP recipients had gross incomes that were less than half of the poverty line. The amount they get from the program is very small — $4.39 a day per recipient. This is hardly enough to survive on, but it makes an enormous difference in the lives of those who get it: The Center on Budget and Policy Priorities estimates that SNAP lifted four million Americans out of poverty in 2010.
The House has proposed cutting food stamp benefits by $40 billion over 10 years — that’s on top of $5 billion in cuts that already came into effect this month with the expiration of increases to the food stamp program that were included in the 2009 stimulus law. Meanwhile, House Republicans appear satisfied to allow farm subsidies, which totaled some $14.9 billion last year, to continue apace. Republican proposals would shift government assistance from direct payments — paid at a set rate to farmers every year to encourage them to keep growing particular crops, regardless of market fluctuations — to crop insurance premium subsidies. But this is unlikely to be any cheaper. Worse, unlike direct payments, the insurance premium subsidies carry no income limit for the farmers who would receive this form of largess. (...)
Farm subsidies were much more sensible when they began eight decades ago, in 1933, at a time when more than 40 percent of Americans lived in rural areas. Farm incomes had fallen by about a half in the first three years of the Great Depression. In that context, the subsidies were an anti-poverty program.
Now, though, the farm subsidies serve a quite different purpose. From 1995 to 2012, 1 percent of farms received about $1.5 million each, which is more than a quarter of all subsidies, according to the Environmental Working Group. Some three-quarters of the subsidies went to just 10 percent of farms. These farms received an average of more than $30,000 a year — about 20 times the amount received by the average individual beneficiary last year from the federal Supplemental Nutrition Assistant Program, or SNAP, commonly called food stamps.
Today, food stamps are one of the main support beams in our anti-poverty efforts. More than 80 percent of the 45 million or so Americans who participated in SNAP in 2011, the last year for which there is comprehensive data from the United States Department of Agriculture, had gross household incomes below the poverty level. (Since then, the total number of participants has expanded to nearly 48 million.) Even with that support, many of them experience food insecurity, that is, they had trouble putting food on the table at some point during the year. (...)
This is not how America is supposed to work. In his famous 1941 “four freedoms” speech, Franklin D. Roosevelt enunciated the principle that all Americans should have certain basic economic rights, including “freedom from want.” These ideas were later embraced by the international community in the Universal Declaration of Human Rights, which also enshrined the right to adequate food. But while the United States was instrumental in advocating for these basic economic human rights on the international scene — and getting them adopted — America’s performance back home has been disappointing.Now, though, the farm subsidies serve a quite different purpose. From 1995 to 2012, 1 percent of farms received about $1.5 million each, which is more than a quarter of all subsidies, according to the Environmental Working Group. Some three-quarters of the subsidies went to just 10 percent of farms. These farms received an average of more than $30,000 a year — about 20 times the amount received by the average individual beneficiary last year from the federal Supplemental Nutrition Assistant Program, or SNAP, commonly called food stamps.
Today, food stamps are one of the main support beams in our anti-poverty efforts. More than 80 percent of the 45 million or so Americans who participated in SNAP in 2011, the last year for which there is comprehensive data from the United States Department of Agriculture, had gross household incomes below the poverty level. (Since then, the total number of participants has expanded to nearly 48 million.) Even with that support, many of them experience food insecurity, that is, they had trouble putting food on the table at some point during the year. (...)
It is, of course, no surprise that with the high level of poverty millions of Americans have had to turn to the government to meet the basic necessities of life. And those numbers increased drastically with the onset of the Great Recession. The number of Americans on food stamps went up by more than 80 percent between 2007 and 2013.
To say that most of these Americans are technically poor only begins to get at the depth of their need. In 2012, for example, two in five SNAP recipients had gross incomes that were less than half of the poverty line. The amount they get from the program is very small — $4.39 a day per recipient. This is hardly enough to survive on, but it makes an enormous difference in the lives of those who get it: The Center on Budget and Policy Priorities estimates that SNAP lifted four million Americans out of poverty in 2010.
by Joseph E. Stiglitz, NY Times | Read more:
Image: Javier Jaén
