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Monday, April 11, 2022

The Economist asks: Do farm subsidies sustain the decline of rural America, by encouraging larger and larger farms?

Nearly a decade of high crop prices and record farm subsidies from taxpayers isn't necessarily good news for rural America, says The Economist, a London-based global magazine that still calls itself a newspaper.

"Despite all this cash, rural America is in deep decline," says The Economist, which generally doesn't name its reporter/writers. "Two-thirds of rural counties lost population from 2010 to 2020, and the total population of rural America fell for the first time in history. The counties that grew were mostly not farming ones but pretty places where people go to retire, near mountains or the ocean, or those with lots of oil. The Midwestern areas which grow most of America’s food are shrinking fastest."

The population is shrinking, but the farms are not. As they are sold or merged into larger operations driven by mechanization, fewer people are needed to tend them. "Just 6 percent of jobs in rural areas are directly linked to farming, and "Most farms, even small ones, 'are highly capitalized agribusinesses growing one or two commodity crops and employing very few people'," says Anne Schechinger, an agricultural economist for the Environmental Working Group," a research-and-lobbying group that dislikes farm subsidies.

"Subsidies, largely in the form of crop insurance, help to ensure the food supply continues, and protect farmers from going bust during downturns," The Economist notes. " But they also determine what America farms—incentivizing farmers to grow vast amounts of soybeans and corn, as well as wheat, which is mostly exported. . . . Fresh fruit and vegetables, which Americans ought to eat more of, are more expensive to grow, and require more labor, but farmers receive almost no subsidies for them."

As farmers get wealthier, "The communities they live in are not," the Economist says, using as its object example North Dakota wheat farmer Phillip Volk, who "says that when he went to school, there were 40 children on his school bus. Today his youngest son goes on the bus with fewer than 10 classmates. His eldest son is likely to take over the farm, but future children may have to go to a boarding school. It is harder to find people to serve as voluntary officials on the school board and county government. Many young people end up moving to places where the job opportunities are more exciting, if not necessarily more profitable. Over half of the churches that used to serve the community have closed. . . . Helping out farmers is politically popular, not least because rural communities are over-represented in Congress. Yet the subsidies may in fact be sustaining the decline of rural America."

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