Are Farm Subsidies Good Economic Development?

Farmers had a record year for sales and profits in 2004. Yet government subsidies are up 40%. Is this good policy?

1 minute read

December 27, 2004, 11:00 AM PST

By Chris Steins @planetizen


"[D]espite the fact that farm income has doubled in two years, federal subsidies have also gone up nearly 40 percent over the same period -- projected at $15.7 billion this year, and $130 billion over the last nine years. And that bounty is drawing fire from people who say that at this moment of farm prosperity, the nation's subsidy system has never made less sense.

'I struggle with the same question: how the hell can you have such high government payments if farmers had such a great year?' said Keith Collins, the chief economist for the Agriculture Department."

...Farm groups say the subsidies provide for a stable food supply, and ensure that major sectors of American agriculture will be competitive on the global market."

Thanks to Chris Steins

Saturday, December 25, 2004 in The New York Times

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 16, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

The Gross Reservoir, a large body of water surrounded by trees and mountains.

Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion

Overuse and climate change have caused the Colorado River’s water levels to plummet.

September 18, 2026 - Inside Climate News

A crowd of people boarding Boston's green line in an underground subway station.

Boston has spent millions making the Green Line more accessible — and there’s no end in sight

While the city has invested millions into expanding and adding platforms to the Green Line to make it more accessible, new train cars set to arrive next year will be too tall for disabled passengers to board without raising the current platforms.

15 minutes ago - Boston Globe

Railroad tracks in Idaho passing a home by a river.

Idaho may see an 18% drop in federal surface transit funding — the largest estimated cut in the US

Transit systems in rural communities are much more reliant on federal funding to provide their services.

1 hour ago - Grist

A Florida family with their belongings in a wagon walks past a destroyed storm after a hurricane.

How ‘post-disaster gentrification’ alters neighborhoods after natural calamities

After hurricanes, fires or other calamities, the original residents of a community are often replaced by younger, wealthier residents.

2 hours ago - Inside Climate News