Our Take

Farm Subsidy Reform: Win-win Opportunities for Taxpayers and Climate

Senate Budget Committee hearing on conservation, climate, and agriculture programs

Agriculture, Budget & Tax, Climate,  | Our Take
Jun 6, 2023 | 3 min read | Print Article

This Wednesday, the Senate Budget Committee will hold a hearing entitled, “Cultivating Stewardship: Examining the Changing Agricultural Landscape.” The hearing will likely address the federal crop insurance program and other farm subsidy programs, in addition to opportunities within agriculture to enhance conservation, land stewardship, and carbon sequestration.

The Senate Agriculture Committee convenes most hearings related to food and farm programs, but increasing climate and taxpayer costs and their interconnectedness to agriculture makes the topic relevant for Senate Budget Committee as well. Agricultural conservation programs, when done right, can contribute to climate mitigation, improved water quality, and land conservation of carbon-rich land.

With Senator Chuck Grassley (R-IA) as Ranking Member of the Committee, farm subsidy reform is likely to be discussed. Senator Grassley has been a long-time champion of common sense reforms to farm subsidy programs, particularly ensuring that subsidies are flowing to actual farmers and that reasonable limitations are placed on the amount of subsidies any one individual may receive.

Eliminating wasteful farm subsidies would save tens of billions of taxpayer dollars and help rein in ballooning debt and deficits. Trimming subsidies could also help the environment, enhance opportunities for beginning farmers, and ensure federal supports are not distorting markets.

The federal crop insurance program can also be reformed to improve cost-effectiveness, transparency, accountability, and resiliency. With simple reforms and ensuring the program is actuarially sound, the crop insurance program can better promote the uptake of climate-friendly and agricultural conservation practices, instead of the current model that at times incentivizes agricultural production in risk-prone areas – at taxpayer expense.

With the taxpayer costs of climate change growing each day, Congress has an opportunity to reform agricultural programs to better reflect realities farmers are facing on the ground and the billions in additional taxpayer costs each year. In agriculture, crop insurance, farm bill disaster programs, and ad hoc disaster aid to agriculture have all increased in cost over the past decade, and this is unlikely to change in the future without reform.

Ensuring the farm safety net is focused, fiscally responsible, and fosters resilience – instead of dependence on federal subsidies – should be front and center for the Senate Budget Committee this week. Opportunities exist to obtain win-wins for both taxpayers and the climate with common sense reforms to agriculture programs. Senator Grassley has championed such reforms in years past, in an effort to help beginning farmers as well. It’s time to make these common sense reforms a reality.

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