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Sturgis Journal, Cathy Annis
Published December 16, 2003

Federal data collected by the Washington-based Environmental Working Group reveals a total of 2.8 million individuals and companies received agricultural subsidies in 2002. Payments totaled more than $12 billion.

About 80 percent were paid to boost the incomes of crop and (to a much lesser extent) livestock farmers; 12.5 percent went to farmers and ranchers through conservation programs; and just over 7 percent went for weather-related disaster programs.

As the subsidy pie was divided throughout the United States, Michigan ranked No. 24, receiving $190.7 million.

Proponents of the program have argued that it keeps food prices low, helps to fend off international competition and to pay for increased regulatory costs.

Others have countered that it pays the agriculture industry to overproduce and favors huge corporate growers over family farms.

EWG data shows among subsidy recipients, large farms collect almost all the money. Nationwide, 10 percent of the biggest (and often most profitable) subsidized crop producers collected 71 percent of all subsidies.

"There's no rhyme or reason at all to the way money is distributed," said Ken Cook, president of the EWG. "It's completely broken in that regard."

An article in the NW Indiana Times supports Cook's statement. It says that farms linked to former WorldCom CEO Bernie Ebbers collected more than $4 million in federal subsidies between 1998 and 2001, according to press reports based on federal data collected by EWG. Other newsmakers shown by EWG database to have directly received aid from the United States Department of Agriculture include basketball star Scottie Pippen (paid $157,890 during the period), Hustler magazine publisher Larry Flynt ($411,856), CNN founder Ted Turner ($353,153) and stockbroker Charles Schwab ($362,787).

Spurred by the resulting controversy, the USDA adopted one reform that took effect this year. The agency cut off subsidies to people who make at least 75 percent of their money outside farming and who gross at least $2.5 million a year.

Some farmers express their frustration with the red tape, saying they'd rather see higher grain prices and get the government out of it. "We've been hooked for decade on the subsidies," Cook said.

"Taxpayers are locked in as well as farmers. There's no easy way out."

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