Farmers' Welfare

The baleful effects of federal ag subsidies

Illinois Issues

November 2001

An essay arguing against farm subsidies as being ruinous of the U.S. Treasury and the Illinois countryside. 

 

Farming is as fickle a calling as politics, and every farmer expects a bad year now and then. But 2001 was the fifth in a string of bad years. In April, a bushel of corn fetched $1.87 on the open market and soybeans were bringing $4.23, in both cases much less than it cost to grow them.

 

Yet few Illinois farmers were loading the PC onto the roof of the SUV and heading west. True, there is much worry and some distress, and plenty of farmers are waiting yet another year to replace the tractor, but no wave of farm bankruptcies has swept the Illinois countryside. The levee against such destructive tides is the federal policy that for nearly 80 years has protected many farmers from failure.

 

Without federal aid, Illinois agriculture would be a disaster. Data from more than a thousand grain farms collected by the University of Illinois Extension Service projected the average net farm income in 2000 to be $32,414, of which $15,816 was federal support of one kind or another. Over five years ending in 2001, federal farm programs under the 1996 "Freedom to Farm" law funneled $5.6 billion of taxpayers' money into Illinois—more than any other state except Iowa and Texas. Farmers, in fact, were to Illinois of the 1990s what defense contractors were to California of the '80s.

 

Good arguments can be made—and have been made for years—that farm aid makes little sense economically or ecologically. Many of the critics are farmers who are genuinely uneasy about "growing for the government." Their combines may have satellite locators and two-way radios, yet they are being paid for in part by a farm subsidy system that was invented during the Depression and has been much changed but little improved in the years since. Planted with the best of intentions, the system has yielded a harvest of perverse effects. It encourages farmers to grow more of what the world already has too much of, wasting soil and energy in the process, helps big farms get bigger, inflates the cost of land and (through higher supermarket prices or higher taxes) the cost of food, and unfairly treats farmers as a privileged class.

 

Farmers like to call subsidies a necessary evil. But if evil is required to keep the system going, perhaps the system ought to be changed. Even its champions—major farmer organizations, big agribusiness corporations, farm-state congresspeople—concede that, at a minimum, the system has to be made more equitable and less expensive. However, to date, there has been little eagerness to rethink basic premises. The U.S. House spent early autumn debating the future of the latest farm bill when it ought to have been talking about the future of farming.

 

The mechanisms have varied, but the federal farm program has always tried to help farmers by stretching a safety net under growers of such staples as corn, through supporting prices or paying them not to grow price-reducing surpluses. The system hasn't worked, in part because the agricultural economy for which it designed no longer exists. While far have made themselves more competitive, the rest of the ag economy has never been less so. In an analysis that is increasingly popular among economists and farm activists, the farmer is squeezed by agribusiness giants at the input end of the business—the seed companies, the sellers of fertilizer and fuel, the machine makers—while at the output end are squeezed by giant grain dealer and food processors. In such a system the remedy for farmers' high costs and low prices is not subsidy but regulation. Some ag economists suggest the Cargills and the ADM should be regulated as public utilities just as railroads were regulated in 19th century after similar complaints were made against them.

 

Simply abandoning federal payments was the ultimate aim of the 1996 farm bill, but that plan led to the present calamity. A further purge of Illinois grain farmers is plainly considered unthinkable by farm leaders and most of the state's congressional delegation, if not by farmers themselves. (Farmers are not troubled by farmers going out business, as long as it's their neighbors and not them.) But not all that many farmers would be thrown into the streets were subsidies to end. The U.S. Treasury is not the only source of income support for Illinois farms. Farms also are massively subsidized by farmers themselves, through income earned at jobs off the farm or from non-farm businesses they run on the side.

 

Grain farming is seasonal work, which is why most operators can—barely—farm and still hold down a full-time job. Of 6,456 Illinois farmers surveyed recently by the University of Illinois College of Agricultural, Consumer and Environmental Sciences, 46 percent had off-farm incomes—about half of those from full-time jobs—and nearly three of five farm spouses worked, too. Those percentages are even higher among younger farmers, farmers of smaller farms and farmers of unsubsidized crops. If marginal farmers fail, it is the farms that would be out of work, not the farmers.

 

In any event, the problem is not that Illinois has too many farmers but too much farmland. Farmers may be put out of business, but good farmland seldom is. In 1949, there were more than 200,000 farms in Illinois, today only 75,000 or so, but the acreage in production has declined only modestly. The land of those who leave is absorbed by their more ambitious, better capitalized, more efficient neighbors. Allowing farms to continue to go out of business is likely to have only trifling effects on chronic grain surpluses.

 

One alternative to the current system would be to grow new "crops" that make a better return on some of that land. Some farmers have turned to supplying their city cousins with experience rather than grain, by converting their ground to "living history farms," you-pick fruit and vegetable farms, and bucolic B&Bs. But there is hardly enough demand to sustain more than a handful of farms this way. Redirected subsidies might expand that sort of business slightly. In some parts of Europe, chiefly Britain and France, they've turned redundant countryside into theme parks for day-trippers. Potential for that sort of tourism in Illinois is modest, however. Most farmers rightly find pandering to bored urbanites demeaning, and, most telling, that puts the government right back into the business of supporting dubious enterprises.

 

The one indisputable demand for rural land now is for home sites. Yet, the problem with sprawl is not that it eats up farmland, which we have in surplus, but that it does so haphazardly. Targeted subsidies could ease the transition from a farmed countryside to a residential one. Instead of buying corn, Washington could buy the rights to develop land that is environmentally or scenically sensitive, helping keep farmers on the land and subdividers off it. It is an old idea long used by local and state governments; the drawback is that it is too expensive for Congress, which is most comfortable spending lots of money on familiar bad ideas than on new good ones.

 

Admirable as they are in other ways, Illinois's farmers can no longer be considered the moral backbone of society. Their fabled independence is rather compromised by their reliance on government checks, and it is hard to think of them as providers when their main contribution to the national diet is the sweetener in soft drinks and the thickener in salad dressings. But they are clearly stewards of the land. Farm families may make up about two percent of the population, but farming remains the single biggest land use in the state, taking up about three-fourths of all acreage. Because farming affects so much land, even small pollution from farms has big impacts, especially on streams and lakes. The larger public gives farmers money and gets back dirty water—among the worst bargains in government programs.

 

That fact has left farm programs vulnerable to criticism from environmentalists as well as budget-balancers. It was largely in hope of blunting that criticism that the authors of the 1985 farm program set up the Conservation Reserve Program. That program pays farmers to take highly erodible land out of production; the government rents it under, usually, 10 or 15-year contracts that require farmers to protect it with soil-saving plantings of grass and trees. This was sold to environmentalists as a green program but farmers recognized that it was intended to reduce production—an old-style acreage set-aside in leafy costume.

 

The Conservation Reserve Program suggested a way to reorder the terms of the quid pro quo between farmers and taxpayers so that taxpayers get something for their money. Prior to 1990, soil erodibility mainly determined whether land was eligible for the reserve; today, eligibility is determined according to broader environmental standards that include water and air quality, wildlife habitat and proximity to "priority areas" such as nature preserves. Even limited conservation reserve plantings in Illinois—this state has less than 925,895 acres enrolled, though that figure varies from year to year—have made a visible difference in the Illinois countryside. In east central and northern Illinois, for example, populations of grassland birds once common to the Prairie State, such as dickcissels and song sparrows, have bounced back.

 

Under this approach, farmers become, in effect, paid landscape contractors to the public. The new relationship is rich with potential. The standards could be expanded further to encompass land with special potential, offering scenic views, hiking, skiing, or cycling, places for repose and reflection or raucous fun—pleasures that are inappropriate to or impossible in cities.

 

More exotic goods could be purchased through set-aside programs. Jim Kinsella, who owns and runs an 840-acre family farm in Lexington, in McLean County, proposed to the U.S. Senate Committee on Agriculture, Nutrition and Forestry in March a federally subsidized carbon sequestration program. Farmland cover crops take carbon from the air and convert it to organic matter, he explained, capturing or sequestering in the soil an average of 0.4 tons of carbon per acre per year. Paying farmers to treat large acreage in this way would compensate for a lot of greenhouse gas emissions. "Why not give something back to the taxpayer for their generosity?" Kinsella asked.

 

The Conservation Reserve Program would seem to be that rare government program that pleases everyone. Farmers get rent for not planting crops on land that usually isn't much good for crops anyway, and the taxpayers get a countryside that is more comely and ecologically diverse. President George W. Bush's administration likes it too, or at least the principles on which it is based; the U.S. Department of Agriculture published a report earlier this year that provided the rationale for expanding conservation funding beyond set-aside land under the next farm bill.

 

Critics of the trend complain that federal farm programs are meant for farmers, not gardeners, and Illinois farmers grow corn and beans. That raises one of the more telling criticisms of the federal farm program, which is not that it subsidizes crops but that it subsidizes the wrong crops. Might the remedy for chronically low farm incomes be for farmers not to find ways to make more money from corn and beans but to stop farming corn and beans?

 

Illinois soils and climate are perfectly suited to grow those crops, but those are not the only crops Illinois is suited to. These days  countries not only eat corn and soybeans but grow them. Growing other things, things the world wants and can afford to buy and that are not available a cheaper price from someone else, would reduce U.S. ag subsidies by making them unnecessary.

 

Illinois farmers have learned to grow new things before. In 1930, the farm program first kicked in, millions of acres of Illinois farm were planted in forage crops and grains, mostly used to feed livestock including the horses that then still powered many farms. Today, that acreage is planted in soybeans, which in 1930 were still an agricultural oddity, known mainly as "green manure." The land once used for grains sustains a multibillion-dollar industry, and an Illinois city can claim to being the soybean capital of the world—or could, until farmers in Europe and Brazil upped production and ate into a lucrative market that Illinois and the rest of the United States dominated for decades.

 

Illinois plainly needs another soybean. Research has been underway for years—in federal agriculture department labs in Peoria, in the state's university ag departments private company headquarters find new field crops that might oust Illinois' duopoly of corn and beans. The wizards have tested plants that could be used to make plastics, biomass, paper, pharmaceuticals, and dozens of raw industrial materials. Some of these ideas are quite promising, but none is much past the pilot stage of development.

 

New crops leave Illinois farmers the classic chicken vs. egg situation or, in the case of Illinois farmers chicken feed vs. egg. New crops require new investments in equipment and expertise, and committing to them is risky without a well-developed infrastructure in place to market, move, and process them. Subsidies might be better spent financing this infrastructure, and thus easing the transition to new crops with market potential, rather than underwriting the production of traditional crops, but the question is not being argued among politicians who write the farm bills.

 

Were the market left free by Congress to do its worst, Illinois between the interstates would teem with satellite-guided tractors trundling back and forth across massive corporate grain factories half a county in size, the countryside converted into an outdoor assembly floor. This may not be the calamity everyone assumes. Thus shorn of its symbolic cap and overalls, Illinois grain farms and hog operations would be recognized for what they have been for a long time: factories. No longer vulnerable to charges that they are strangling family farming, lawmakers at every level might well feel free to regulate agriculture like any other industry. Pollution standards may be imposed, scenic buffers demanded, wildlife habitat insisted upon as a condition of farming permits, the way we demand new stoplights from subdivision developers.

 

The future for Illinois farming is as murky today as it was in the 1920s, which was the last time new production technologies led to price-wrecking gluts of grain worldwide. But family farmer will not disappear as long as the economy has a use for them. They will survive in the same way that mammals survived the dinosaurs, by being smarter and nimbler than their giant competitors, turning their unmatched entrepreneurial and technical skills to new crops as they have done more than once in the past. ●

SITES

OF

INTEREST

John Hallwas

Essential for anyone interested in Illinois history and literature. Hallwas deservedly won the 2018 Lifetime Achievement Award from the Illinois State Historical Society.

Lee Sandlin Author

One of Illinois’s best, and least-known, writers of his generation. Take note in particular of The Distancers and Road to Nowhere.

Chicago Architecture Center

See Home Page/Learn/

Resources for a marvelous building database, architecture dictionary, even a city planning graphic novel. Handsome, useful—every Illinois culture website should be so good.

The Encyclopedia of Chicago

 

The online version of The Encyclopedia of Chicago. Crammed with thousands of topic entries, biographical sketches, maps and images, it is a reference work unmatched in Illinois.

Illinois Great Places

The Illinois chapter of the American Institute of Architects in 2018 selected 200 Great Places in Illinois that illustrate our  shared architectural culture across the entire period of human settlement in Illinois.

McLean County Museum

of History

A nationally accredited, award-winning project of the McLean County Historical Society whose holdings include more than 20,000 objects, more than 15,000 books on local history and genealogy, and boxes and boxes of historical papers and images.

Mr. Lincoln, Route 66, and Other Highlights of Lincoln, Illinois

 

Every Illinois town ought to have a chronicler like D. Leigh Henson, Ph.D. Not only Lincoln and the Mother road—the author’s curiosity ranges from cattle baron John Dean Gillett to novelist William Maxwell. An Illinois State Historical Society "Best Web Site of the Year."

Illinois Digital Archives

 

Created in 2000, the IDA is a repository for the digital collections of the Illinois State Library and other Illinois libraries and cultural institutions. The holdings include photographs, slides, and glass negatives, oral histories, newspapers, maps, and documents from manuscripts and letters to postcards,  posters, and videos.

The Illinois State Museum

 

The people's museum is a treasure house of science and the arts. A research institution of national reputation, the museum maintains four facilities across the state. Their collections in anthropology, fine and decorative arts, botany, zoology, geology, and  history are described here. A few museum publications can be obtained here.

Chronicling Illinois

“Chronicling Illinois” showcases some of the collections—mostly some 6,000 photographs—from the Illinois history holdings of the Abraham Lincoln Presidential Library.

Chicagology

I will leave it to the authors of this interesting site to describe it. "Chicagology is a study of Chicago history with a focus on the period prior to the Second World War. The purpose of the site is to document common and not so common stories about the City of Chicago as they are discovered." 

Illinois Labor History Society

The Illinois Labor History Society seeks to encourage the preservation and study of labor history materials of the Illinois region, and to arouse public interest in the profound significance of the past to the present. Offers books reviews, podcasts, research guides, and the like. 

Illinois Migration History 1850-2017

The University of Washington’s America’s Great Migrations Project has compiled migration histories  (mostly from the published and unpublished work by UW Professor of History James Gregory) for several states, including Illinois. The site also includes maps and charts and essays about the Great Migration of African Americans to the north, in which Illinois figured importantly. 

History on the Fox

An interesting resource about the history of one of Illinois’s more interesting places, the Fox Valley of Kendall County. History on the Fox is the work of Roger Matile, an amateur historian of the best sort. Matile’s site is a couple of cuts above the typical buff’s blog. (An entry on the French attempt to cash in on the trade in bison pelts runs more than

2,000 words.)

BOOKS

 OF INTEREST

Southern Illinois University Press 2017

A work of solid history, entertainingly told.

Michael Burlingame,

author of Abraham 

Lincoln: A Life 

One of the ten best books on Illinois history I have read in a decade.

Superior Achievement Award citation, ISHS Awards, 2018

A lively and engaging study . . .  an enthralling narrative.

James Edstrom

The Annals of Iowa

A book that merits the attention of all Illinois historians

as well as local historians generally.

John Hoffman

Journal of Illinois HIstory

A model for the kind of detailed and honest history other states and regions could use.

Harold Henderson 

Midwestern Microhistory

A fine example of a resurgence of Midwest historical scholarship.

Greg Hall

Journal of the Illinois

State Historical Society

Click  here 

to read about

the book 

Click  here 

to buy the book 

Southern Illinois University Press

SIU Press is one of the four major university publishing houses in Illinois. Its catalog offers much of local interest, including biographies of Illinois political figures, the history (human and natural) and folklore of southern Illinois, the Civil War and Lincoln, and quality reprints in the Shawnee Classics series.

University of

Illinois Press

The U of I Press was founded in 1918. A search of the online catalog  (Books/Browse by subject/Illinois) will reveal more than 150 Illinois titles, books on history mostly but also butteflies, nature , painting, poetry and fiction, and more.  Of particular note are its Prairie State Books,  quality new paperback editions of worthy titles about all parts of Illinois, augmented with scholarly introductions.

University of

Chicago Press

The U of C publishing operation is the oldest (1891) and largest university press in Illinois. Its reach is international, but it has not neglected its own neighborhood. Any good Illinois library will include dozens of titles about Chicago and Illinois from Fort Dearborn to

Vivian Maier.

Northern Illinois University Press

The newest (1965) and the smallest of the university presses with an interest in Illinois, Northern Illinois University Press gave us important titles such as the standard one-volume history of the state (Biles' Illinois:
A History of the Land and Its People) and contributions to the history of Chicago, Illinois transportation, and the Civil War. Now an imprint of Cornell University Press.

Reviews and significant mentions by James Krohe Jr. of more than 50 Illinois books, arranged in alphabetical order

by book title. 

Illinois Center for the Book

Run by the Illinois State Library, The Center promotes reading, writing and author programs meant to honor the state's rich literary heritage. An affiliate of the Library of Congress’s Center for the Book, the site offers award competitions, a directory of Illinois authors, literary landmarks, and reading programs.

Contact James Krohe Jr. at CornLatitudes@outlook.com

All material copyright © by James Krohe Jr. unless otherwise indicated