Last week, the New York Times reported that farm subsidies seem to be one of the only budget items both sides of the aisle seem to agree on when it comes to spending cuts:
“Further, after taking a beating from constituents concerning their Medicare proposal last month, Republicans are eager to find an area of common ground with Democrats. Farm subsidies seem to fit the bill; conservatives condemn them as intrusions into the free market, liberals denounce them for encouraging environmentally harmful overfarming, and both sides see them as a form of corporate welfare.
What is more, some subsidies have placed the nation in violation of trade agreements, and members from both sides of the aisle have questioned why, with biofuel mandates creating such demand for ethanol, the government needs to subsidize it.”
It is about time policy makers start taking a hard look at farm subsidies. Yes, they only represent about $15 billion worth of savings, but cutting them would have indirect positive effects on the American economy by making US consumers relatively richer and on the world economy by allowing developing countries to tap into their comparative advantage, i.e., agriculture.