It seems like every day I read about how government wastes money so I thought I would record them. Since I began this blog, I have been stunned by the amount of waste, fraud, and mismanagement I have found. I recognize that some government is necessary for any society to exist but without the "profit incentive" that we have in private enterprise, government continues to grow like a cancer and along with it the potential for abuse. If you ever needed a reason to limit government, just read some of the following posts.

Saturday, May 5, 2012

Farm Subsidies

The Washington Post has identified more than $15 billion in wasteful, unnecessary and redundant spending:
  • The largest annual subsidy, called direct and countercyclical payments, is given to farmers regardless of what crops they grow — or whether they grow anything at all. The Post found that, since 2001, at least $1.3 billion was paid to landowners who had planted nothing since 2000. Among the beneficiaries were homeowners in new developments whose backyards used to be rice fields.
  • For the 2005 corn crop, the federal government spent about $4.8 billion to compensate farmers for low corn prices. That was $3.8 billion more than needed to give them the government-guaranteed price. The program has cost taxpayers $29 billion since 1998.
  • A 2002 program aimed at helping those facing a serious drought gave $635 million to ranchers and dairy farmers who had moderate or no drought. Some ranchers got money because they lived in counties declared disaster areas after debris fell to earth from the space shuttle Columbia. 
  • The government spent billions to expand crop insurance coverage and eliminate the need for annual disaster payments. But taxpayers spent about $9 billion for disaster payments anyway — often to the same farmers. Big beneficiaries of the program were 16 private insurance companies.
  • The multibillion-dollar farm subsidy system often is touted by Congress as a way to save small family farms. Instead, those policies are helping to accelerate their demise, because owners of large farms receive the most subsidies and often use the money to acquire more land. 
  • Federal rules limit the total amount that farms can receive from the three primary farm programs to $180,000 annually. But for the 2004 crop year about $817 million was sent to farms that had already reached their limits.
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