The Farm Bill: Where Wealthfare Meets Welfare

The US Farm Bill is bipartisan swamp cultivation at its worst. Democrats and Republicans come together and eagerly and equally trade their “principles” for election support and campaign contributions. Most of the money in the bill is for food stamps (urban votes) but there is plenty of money, mandates, and market restriction to keep agribusiness lobbyists contributing and congresspeople from rural states happy. There is an opportunity in this year’s bill for a bipartisan compromise which makes small steps in reducing corporate wealthfare and reforming welfare.

Perhaps the most egregious example of wealthfare is the complex of import quotas and price supports which keep US domestic sugar prices 84% higher than the world price; big sugar has it sweet. There is even a provision which instructs the Agriculture Department to buy sugar at an inflated price and then sell it to ethanol producers at a LOWER price – talk about pushing all the campaign contributor buttons. Otherwise free-marketeer Marco Rubio from sugar-producing Florida goes through contortions supporting the sugar subsidies similar to those Bernie Sanders used to go through to support gun rights - until he didn’t have to anymore.

Republican Rep. Virginia Foxx of North Carolina has proposed an amendment which prunes the sugar support by undoing the joint subsidy to the sugar and ethanol industries and repealing anticompetitive ”market allotments”.  This will not pass without support from Democrats; too many Republicans (as well as Democrats) are in sugar’s pocket.  Read on; there’s a possible deal to be made.

Republicans would like to strengthen the work requirement for food stamps in the Farm Bill. Food stamp usage keeps going up despite a booming economy and low unemployment. Food stamps are part of a complex of welfare programs which make it more profitable for some to stay unemployed rather than take low wage jobs. Voluntary unemployment is bad for individuals and families and bad for an economy lacking even unskilled workers.

It’s only possible to strengthen the work requirement when there actually are jobs available. That time is now and we shouldn’t miss the opportunity. This measure can probably pass the House without support from Democrats but is likely to be blocked in the Senate where a supermajority of 60 votes is needed.

So here’s the deal: Republicans give up some of the wealthfare benefits for their sugar daddies; Democrats agree to a sensible strengthening of the existing work requirement. Republicans can point to welfare reform; Dems can boast about cutting corporate wealthfare. The Wall Street Journal puts it well: “Republicans would have more credibility on reforming welfare for people if they did the same for politically powerful agribusiness.”