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You'll gain real-world insights into how economics impacts your daily life with this easy-to-follow online course. This crash course is based on the acclaimed textbook Economy, Society, and Public Policy by CORE Econ, tailored to help you grasp key concepts without feeling overwhelmed.

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Walz hears farm bill ideas

Farm Hearing
Congressman Tim Walz heard suggestions for the next farm bill during this meeting in Worthington. Walz will hold a series of meetings across southern Minnesota's 1st District.
MPR Photo/Mark Steil

Federal farm programs have become a big issue because they pay out so much money; more than $18 billion last year alone.

Just who gets that money will be a big part of this year's debate.

The largest farm subsidy payments generally go to rice and cotton farmers in the south. In 2005, an Arkansas rice company collected almost $16 million. In Minnesota, the top farm received just under $2 million.

Hog farmer Jim Joens told Walz federal farm programs need some basic changes. He said too much of the money goes to the very largest farmers. He says that helps them get even bigger, squeezing out the traditional family model.

Jim Joens
Hog farmer Jim Joens told Rep. Walz federal farm programs need some basic changes
MPR Photo/Mark Steil

"What we do in this farm bill the next time I think will dictate the size of the farms that we want out here in the country," says Joens. "And I think you need to watch that very carefully."

Operators of large farmers have argued in the past that proportionately their slice of subsidies is no greater than a family farmer. Still many politicians say it's time to limit what one farm can receive.

The Bush administration is calling for a subsidy cap.

Southwest Minnesota farmer Jim Joens says a big problem with subsidies is that they raise farmland values. He says land prices have increased rapidly the past few years, making it almost impossible for young farmers to buy or in some cases even rent acres. Joens says subsidies should be targeted at small farms to help them stay in business.

In the past, any attempts to change or cut farm subsidies has run into strong opposition. At the Worthington meeting, farmer Dean Christopherson argued for his segment of the agricultural economy.

"I realize everybody wants more."

"I am a dairyman and I do milk cows and I would like to see that as part of the new farm bill," said Christopherson. "Current levels would be nice, raise the levels. There's some differences, I realize everybody wants more."

That's the heart of the farm subsidy issue. Many farmers count on the subsidies to stay in business. Plus farmers not receiving money want in.

This year it's fruit, nut and vegetable farmers. Traditionally they've received little if any subsidies. This year there are proposals to send some federal money their way.

Farm program supporters say subsidy benefits reach far beyond individual producers. Chad Cummings lives in the small town of Brewster. The banker and city council member told Walz farm subsidies are a major portion of the farm economy.

"I would ask for your support in helping the people that basically live here, work here and make the money here," says Cummings. "That's how we live. We're all farm related no matter if you own a tractor or not."

The debate over farm subsidies taps local but also global opinion. Third world nations say their farmers can't compete with subsidized farmers in western countries like the U.S. Environmental groups say subsidies encourage over production, causing soil erosion and other problems.

Rep. Tim Walz
Congressman Tim Walz listens to testimony at a hearing on the Federal Farm Bill in Worthington.
MPR Photo/Mark Steil

U.S. Representative Tim Walz told the group the debate in Congress will be vigorous. He says one problem he sees in getting farm programs funded as he wants is the ongoing budget deficit. He says that could limit agricultural spending.

"The budget situation is one that is very, very difficult. I'm a person that believes especially in this farm bill, this farm bill is far more about than agriculture. This is about the economic and the social well-being of rural America," says Walz.

One thing Walz has in his favor is that he belongs to the majority party in Congress. The Democrats control the House and Senate committees which will write the next farm bill.

Walz says he'll work to see that the thoughts and opinions he's heard at his farm bill meetings find their way into that legislation.

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