Here is some more political history of U.S. Farm Bills and farm programs. It's an awesome history, but a forgotten, erased, history. We greatly need to know this today. Democrats have supported "living wage" or "parity" minimum farm price floors, backed up by supply reductions, as needed to balance supply and demand. No subsidies are needed in these programs. They also supported maximum farm price ceilings, backed up by reserve supplies, as needed to prevent price spikes. While the increasingly Republican farm programs have greatly lowered farm income and subsidized foreign countries with below cost sales, Democrats have favored making a profit on exports. While Republican subsidies, (to compensate farmers for trade wars where the U.S. loses money on exports,) are expensive and irrational, Democratic programs are much cheaper, and sometimes the programs have made a profit for the government, (for example, 1942-1950, during the parity years).

1. By Brad Wilson, 4/23/22. https://www.slideshare.net/bradwilson581525/presentations
Democratic Party Farm Bills
From the Great Depression to the 21st Century.

2. By Brad Wilson, 4/23/22
Parity: A “LivingWage” Standard
Rising Up from the Great Depression; An Economic Stimulus to Fight World War II

3. Maximum Price Ceilings trigger the release of Reserve Supplies, as needed to balance Supply & Demand on the top side,
to protect consumers, livestock farmers and industry.
Floors (& Reductions); Ceilings (& Reserves)
Minimum Price Floors, backed up by Supply Reductions, as needed, to protect farmers.

4. Date
An End to “Hooverism”

5. Date
Oversupply: Farm Prices Crash 63%!
Farm Implement & Auto Manufacturers Managed their supply, prices fell only 6% & 16%.

6. Date
Farms Bankrupt, Banks Foreclosed
Banks and insurance companies acquired farms during the 1930s.

8. Date
Crop & Livestock Price Floors

9. Date

10. Date
Supply Management
Mismanaged by the Eisenhower Administration to make the programs look bad.

12. “Freedom to Farm,” the 1996 Republican Farm Bill, (vetoed then signed by Clinton,) was labled “Freedom to Fail” by farmers.
Price Floors Reduced: Starting with Eisenhower
Price Floors & Supply Management Ended in 1996.

13. We’ve seen increasing volatility since the ending of market management programs in 1996.
U.S., Iowa Net Farm Income Fell!
Recently Iowa Net Farm Income fell to only 33% of what it was during the Parity years.

15. OPEC Cut Production, Raised Prices
US: Over-Produced, Lowered Prices

16. US Farms: Down, Down, Down!
OPEC: Way up Off the Top of the Chart!

18. Date
Democrats Fought for Fair Farm Prices

20. 01
Farm Bills &
Proposals
✤ Early Farm Bills (1933-1941, Few, Low Price
Floors)!
✤ “Parity” Farm Bills (1942-1952, multiple
crops, livestock & poultry products, fruits &
vegetables)!
✤ Reduced Price Floor Bills, inadequate
supply management (1953-1995, farmers get
less even with subsidies started in 1961,
1962, 1964, 1977, 1982, 1998).!
✤ Market Management (of price & supply)
ends in 1996, except for sugar.!
✤ Restoration proposals, 1950s-1970s
(National Farmers Organization, American
Agriculture Movement, etc.
✤ “Farm Policy Reform Act,” “Harkin-
Alexander” (1985, FAPRI study)!
✤ “Family Farm Act,” “Harkin-
Gephardt” (1987, FAPRI study)!
✤ “Food from Family Farms
Act,” (National Family Farm
Coalition, APAC study 2003)!
✤ “Market Driven Inventory
System,” (National Farmers Union,
APAC study 2012)!
✤ Texas Farmers Union Proposal,
(APAC study 2017)!

21. Harkin-Gephardt Farm Bill Proposal
!
Net Farm Income Up by $300+ Bil.
Government Costs Down $124 Bil.

24. Date

25. Date

28. Date
US Farm Debt: Record High in 2020

29. Date

30. Date

31. Date
Market Agreements Helped Fruits &Vegetables

32. Date

33. Date

34. Date

35. Date

36. Date

37. Date

38. Date

39. Date

40. Date

41. Date

42. Something is missing from this paradigm, leading to myths about farm subsidies.!
See the next slide! (Historical averages, 1980-2005.)
Farm D Gets 1,000x, (C 100x, B 10x) More Subsidies
Why is this story, (so virally told,) radically false?

43. This series of data on 4 farms is based upon averages for 1980 to 2005.
Farm D is 1,000x, (C 100x, B 10x) Bigger!
As average farms growing corn, soybeans and oats, 3 or 30 acres is nowhere close to full time.

44. Date
Each Farm has the same ratio of crops.
This is based on historical averages for the entire period, 1980-2005.

45. Date
Farm D Has 1,000x, (C 100x, B 10x) More Market Income!
Compared to Farm A, (3 acres). Same as on other charts. (Historical averages, 1980-2005.)

46. https://www.ers.usda.gov/data-products/commodity-costs-and-returns.aspx Averages, 1981-2005.
Farm D Has 1,000x, (C 100x, B 10x,) More Costs!
These are average full economic costs as measured by USDA-ERS.

47. (Historical averages, 1980-2005.)
Market Income & Full costs
The data from these charts is left out of almost all writing & speaking about farm subsidies.

48. Date
Market Income MINUS Full Costs

49. Date
Net Result, Including Subsidies

50. Date
Assets: x10, x10, x10.
Low Return on Assets (profitability)? Compare the charts below.

51. This kind of calculation can be made using data from the Census of Agriculture.
Profitability: SmallVs. Big Farms
Studies have found that most economies of size are achieved on a 2 person farm.

52. This is similar to, (but somewhat different from,) USDA’s “Rate of Return on Equity from Current Income.
Return on Equity: Way Down
To get long term data I used Net Farm Income divided by Equity.

53. Figured here as Net Farm Income divided by Assets. Note the Decline from the “parity years.”
Return on Assets: Very Low
U.S. Farmers make very little on their investments in land, facilities, machinery, etc.

54. Date
Agribusiness vs Farmers: ROE
ROE = Return on Equity

55. Includes Crop (Revenue) Insurance and other subsidies?
Farmers vs. Insurance Corps.!
Farmers are usually subsidized up to 5%, Insurance Corps. to 18%!

56. Date
ARC (‘Revenue Insurance’): No Subsidies 2017!

57. Date
ARC (‘Revenue Insurance’): No Subsidies 2018!

58. When farmers signed up in 2014, and were forced to gamble between ARC & PLC, (risk management,) the price of corn
was $3.71. The PLC subsidy trigger was lower, at $3.70, offering no subsidies. Farmers chose ARC.!
The PLC subsidy trigger was not adjusted for inflation, so it became lower each year, 2013 through 2023.
No ARC Subsidies for 2017 & 2018?
93.4 % of corn farmers signed up for ARC, not PLC. (Figures are nominal, not adjusted for inflation.)