For Your Information

Subsidies to Corporate Farms Increasing in U.S.

According to a report by the Environmental Working Group’s (EWG), direct farm subsidies in the U.S. rose to $16.4 billion in 2003, a 27 per cent increase over the previous year. Direct farm subsidies include cash payments for production and crop insurance payments. While the total paid out in farm subsidies is growing, the EWG report shows that the number of small farmers receiving subsidies is shrinking even more rapidly, with 10 per cent of recipients receiving 72 per cent of the money.

In 2003, the largest single recipient of subsidies was Riceland Foods, based in Stuttgart, Arkansas. Riceland Foods is the largest rice producer in the U.S. The Producers Rice Mill Inc., also based in Stuttgart was the second largest recipient, with $51.4 million.

On the livestock side, Pilgrim’s Pride, based in Texas and the second-biggest poultry producer in the U.S., received over $11.4 million in subsidies, including insurance payments for losses caused by the avian flu epidemic, while Cargill’s turkey production business received $6.7 million. (Cargill posted record profits in 2003).

The EWG report found that small, independent farmers are receiving less and less direct aid – an average of $768 a year for the past eight years.

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