Farm Bill Archives - Talk Poverty https://talkpoverty.org/tag/farm-bill/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 14:50:39 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png Farm Bill Archives - Talk Poverty https://talkpoverty.org/tag/farm-bill/ 32 32 America’s Dairy Farms Are in Crisis and the Farm Bill Won’t Help https://talkpoverty.org/2018/06/07/americas-dairy-farms-crisis-farm-bill-wont-help/ Thu, 07 Jun 2018 15:38:18 +0000 https://talkpoverty.org/?p=25834 When Lorraine Lewandrowski drives from her Herkimer County dairy farm to her law office each day, she notices the changes happening across rural upstate New York. “When I grew up here, we had 30 or 40 farms in our neighborhood,” she says. “We had a local hardware store, machinery dealers, two dentists, two doctors. We had a vibrant rural town. Now we don’t have that.”

Today, she says, roadsides are dotted with “for sale” signs. Farms sit vacant, their owners having relocated to urban areas in search of work. Once-pristine barns have become dilapidated after years of low prices left farmers without money for infrastructure upkeep. The closest city, Utica, is the sixth-most distressed city in the country, with about half of the adults unemployed and more than a quarter of the population living in poverty.

Depressed farm prices are impacting farmers across industries nationwide. Since 2013, farm income has fallen by more than fifty percent, and median farm income for 2018 is projected to be negative (-$1,316, to be exact). But dairy farmers are arguably being hit the hardest, as they face a fourth year of milk prices that are well below the cost of production. The resulting stress has become so pronounced that the Agri-Mark Dairy Cooperative, which manages milk sales for its member farms, sent farmers suicide hotline numbers along with their milk checks earlier this year.

Today, it costs a farmer approximately $22 to produce a hundredweight, or one hundred pounds, of milk. But the market price for milk is significantly less. While the price of milk constantly fluctuates, farmers are currently paid as low as $15 per hundredweight—30 percent less than the cost of production.

The Agri-Mark Dairy Cooperative sent farmers suicide hotline numbers along with their milk checks.

Farmers and organizations are calling on legislators in both the House and the Senate to draft Farm Bill legislation that addresses the current farm crisis. While the U.S. Senate Farm Bill is expected to be introduced as soon as this week, the House version will be brought back to the floor for a second time on June 22, after 30 Republicans joined all 183 Democrats in defeating the bill in May. In a National Family Farm Coalition (NFFC) press release that applauded the defeat of the House Bill, board president and fourth generation dairy farmer Jim Goodman said, “This bill missed a key opportunity to fix the ongoing crisis in the dairy sector and the downturn in the farm economy. With the bill’s defeat, Congress can now go back to work to draft a true bipartisan farm bill—one that is supportive of family farmers, rural communities, SNAP recipients, and the environment.”

The release builds on an April letter that the NFFC—along with 50 other organizations—sent to Secretary of Agriculture Sonny Perdue and Congressional leadership of agriculture committees, demanding that attention be paid to the dairy crisis before more farms are lost. “Small, family-run dairy farms play a vital role in the rural economy while providing a safe, affordable food to consumers. If the current cycle of low prices and contracted dairy markets continues, we will see virtually all of these farms go out of business, with serious impacts on the economic and social health of rural America,” they wrote.

The groups proposed setting an immediate floor price of $20 per hundred pounds of milk, an emergency measure that would rescue dairy farmers on the brink of losing their operations. The groups also proposed a shift in dairy policy to ensure a balance between supply and demand, known as “supply management.”

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Supply management policies were first implemented after the Great Depression to stabilize the market. The supply of agricultural products was coordinated, and strategic reserves of commodities were stored to supplement American food supply during times of poor yields. If supply began to overburden reserves, farmers were paid by the federal government to take land out of production to avoid flooding the market.

But in the 1970s, agriculture made a swift about-face. Earl Butz, the Secretary of Agriculture during the Nixon Administration, famously took the approach of “get big or get out.” He encouraged farmers to produce as much as they could and dangled the promise of foreign exports for any overages. The new era encouraged farmers to take out loans to lease more land and buy equipment built for larger scale operations. But increased production led to a dip in prices at the same time that the U.S. enacted a grain embargo against the Soviet Union. The dominos began to fall—market prices crashed, interest rates skyrocketed, loans were called in. By the mid-1980s, the Farm Crisis—the biggest farm crash since the Great Depression—was in full swing. As a result, tens of thousands of farms were lost, and many rural communities experienced a forced exodus of its residents.

Some worry that today’s agricultural recession too closely echoes the lead-up to the 1980s Farm Crisis: oversupply and falling crop prices, rising interest rates, family farms rapidly going out of business, and now a looming trade war that could impact over 90 agricultural exports. And as dairy farmers face a crisis that has reached emergency levels, the idea of supply management is being resurrected, appearing on the lips of farmers and experts as an approach worth discussing. It’s not without controversy, of course. Those opposed to it say the policy allows government to unnecessarily interfere in private marketplaces. But supporters say it would steady the volatile dairy market by keeping milk production in relative balance with demand.

NFFC’s Goodman says, “Supply management is a long term fix. If we really wanted to look forward and say, ‘We don’t want this crisis to happen again… what steps can we take to prevent it?’, then supply management would be one of those.”

Many supporters of supply management point to the success of Canada’s dairy program, in which farms own shares in the market and are required to increase or decrease production according to demand. The group Dairy Farmers of Canada maintains that the system provides farmers “a predictable and stable revenue.” In an email, Lewandrowski wrote, “The Canadians seem to be doing very well for the rural economies with their [supply management] program. Drive around Ontario and you see pretty well maintained farms with new equipment. Drive over the border into rural NY, and you see miles of empty farms, barns falling down, and people struggling to live.”

Mike Eby, Board Chairman of the National Dairy Producers Organization and a former 7th generation dairy farmer from Pennsylvania, says it’s necessary to control the amount of milk in the marketplace, but doesn’t believe it should or will come through government intervention. Instead, Eby thinks the solution lives within dairy cooperatives, which currently represent 80 percent of U.S. produced milk, primarily through memberships with farmers.

Eby says, “Either farmers control the amount of milk they produce, or the excess will control the number of farmers that produce it… We look to the farmer and say you need to own this problem as well, because if you can’t own the problem, you can’t own the solution. In order to own the solution, your only hope in doing so is to utilize the cooperative you already own.” Eby and his colleagues say the cooperatives “are in the perfect position to monitor the marketplace and ask their members to respond accordingly” by producing more or less milk based on demand.

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While small and mid-sized dairies are going out of business, the number of bigger farms—including those termed mega-farms or concentrated animal feeding operations (CAFOs)—are growing across industries ranging from hogs to grain, tree nuts, vegetables, eggs, and dairy. And modern agricultural policy is shifting to favor these large producers by favoring anti-regulatory policies and awarding the majority of farm subsidies to the biggest and most lucrative operations. Goodman maintains that Wisconsin’s dairy farmers “have been duped into producing too much milk” through expansion grant programs, laws favoring large dairies, and a commitment by Governor Walker to grow the state’s annual milk production to 30 billion pounds by 2020.

Additionally, as processors get bigger, farms must grow to match the higher demand, or leave the business altogether—a pressure amplified last March, when Wal-Mart announced the construction of their own dairy plant. The announcement resulted in the second-largest dairy company, Dean Foods, abruptly severing contracts with more than 100 dairy farms in eight states. Farmers fear that Wal-Mart’s model will gradually expand across the country, edging small producers out almost entirely.

In January, the USDA reported that the number of licensed dairy farms dropped to 40,000. This represents a 3 percent decline in a single year, and a loss of 17,000 dairy farms—30 percent—over the last decade. But while the number of farms decreased, the number of milk cows and milk production increased. This discrepancy represents the consolidation of the market, a restructuring that has changed the face of agriculture over the last three decades. In a new report, the USDA found that “by 2015, 51 percent of the value of U.S. farm production came from farms with at least $1 million in sales, compared to 31 percent in 1991.”

Goodman says the dairy crisis is hitting the smaller farmers much harder, as larger producers can often afford to weather periods of low prices. “Even if they’re getting paid less per hundred pounds of milk, they can just produce more milk to make up the difference,” he says. “And they’re relying almost entirely on immigrant labor, so they know they can pay a lower wage, which also feeds into things.”

It’s kind of like Hunger Games for farmers.

In an interview with Heritage Radio Network, Lewandrowski said, “I would like to ask the processors: How do they ensure sustainability for their farmers who supply them? Most of the processors pay rock bottom prices, and some of them have the farmers bidding down each other. It’s kind of like Hunger Games for farmers.”

Lewandrowski and her sister, who together operate a 60-cow dairy, use the income from their off-farm jobs to supplement their farm income. Lewandrowski works by day as an attorney, and her sister is a large-animal veterinarian. “I’m lucky I have another way to make money,” she tells me. All around her, neighboring farmers are facing increased stress and tough decisions driven by a market with no rebound in sight. “Just about everyone I know has an off-farm job, or is taking on more debt.”

In her work as an attorney, Lewandrowski is “inundated with farmers.” They need help navigating logging or hunting contracts to make extra money, or selling a piece of land, or getting released from their mortgages. She helps with divorces and estate plans. “I just had one farm liquidate their whole herd,” she says, the surest sign that dairy farmers are facing desperate times.

Frustrated by the lack of support for farmers, Lewandrowski has become a vocal presence on social media. She uses it to amplify the realities facing rural communities and, specifically, the stress being felt among dairy farmers. In April, she tweeted to her 25,000 followers:

“Went to Walmart late at night. Kid at cash register told me he’s a dairy farmer, works the night shift to make $.”

“I hang onto happier days ahead. A farmer neighbor collapsed from stress today. We all went over to do the chores.”

“Feeling very bitter today as every last farmer in my area struggles for their life.”

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The House Farm Bill Doubles Down on TANF’s Mistakes https://talkpoverty.org/2018/05/03/house-farm-bill-doubles-tanfs-mistakes/ Thu, 03 May 2018 14:07:54 +0000 https://talkpoverty.org/?p=25686 Even when I was a single mother facing homelessness, applying to receive cash assistance from the state never felt like a feasible option.

Temporary Assistance for Needy Families (TANF) goes by many names depending on the state where you’re applying for services, but the basics are the same: Recipients are assigned caseworkers and they report their progress—as often as weekly—to show that they are participating in approved work-related activities for the required number of hours. TANF means constant check-ins and a complete loss of autonomy in any chosen career path for little in return. Cash assistance amounts are detrimentally low—sometimes less than $200 a month.

In the new Farm Bill proposed by Rep. Mike Conaway (R-TX), Chairman of the House Committee on Agriculture, Conaway’s mission is to change the Supplemental Nutrition Assistance Program (SNAP, more commonly known as food stamps) to mirror the TANF program. Congressional Democrats adamantly argued against making such changes, which would reduce the number of people who can get the food assistance they need.

Conaway’s Farm Bill would make SNAP’s current work requirements even harsher. Nearly any non-disabled adult under age 60 who isn’t able to work 20 hours every week would only receive benefits for three months every three years. If they’re raising a child age 6 or older, they would still be subject to the new rules. If they’re unemployed or working a job that isn’t assigning them enough hours, tough luck. Much like TANF, people would need to check in monthly or risk losing their food benefits for 12 months for their first “failure to comply,” and 36 months for their second. Rep. Sean Maloney (D-NY) says that that this policy is simply “a backdoor way to kick people off the program.”

Agriculture Committee Ranking Member Collin Peterson (D-MN) argued against the changes several times in the committee’s nearly six-hour meeting on the bill. “You need to understand what you’re doing,” he pleaded. “When we put the work requirements into TANF and SNAP, one of the biggest problems is lack of flexibility.”

When I applied for TANF in 2007, I had to attend work preparation classes that were several hours long. Even though I’d worked full-time for more than 10 years, I had to learn how to write a resume, how to go online and look for jobs, and I was told I should consider a career as a secretary or a baker. I had to mark these career paths on a sheet, and tell my caseworker my plan to pursue those fields, even though that wasn’t my interest. Higher education, even at the local community college, wasn’t an option. All of this seemed for show, and a waste of everyone’s time, since I was a month away from giving birth to my first child and determined to be a writer.

TANF’s maze of paperwork is so incredibly difficult to work through that many people, like me, are discouraged before they even begin

Seven years later, as a possible TANF applicant again, I now had a bachelor’s degree. I’d still have to attend those same classes, but with the added stress of finding a child care facility that would accept TANF’s payments for my daughter to attend. Midway through reading the thick packet of paperwork my caseworker had mailed me to apply, I called to ask how much money I’d receive each month as a family of three. “Probably about 80 dollars more than your child support,” she said with a sigh. “It’s probably not even worth it for you to apply.” (If a custodial parent is already receiving a monthly amount in child support, the state reroutes the payments to the agency, and pays the participant directly instead.)

“Okay,” I told my caseworker, tucking the papers back into the manila envelope before I tossed it into the trash. I was not only a qualified applicant, but one the program was supposed to help. Yet TANF’s maze of paperwork is so incredibly difficult to work through that many people, like me, are discouraged before they even begin.

House Democrats voiced their concerns that Conaway’s Farm Bill would similarly overburden SNAP recipients and program administrators if it switched to running as a work program instead of a food program. The amount of paperwork that people would be required to file on a monthly basis—and that caseworkers would need to process—would require new systems, new employees, and training. While House Democrats argued that more than 2 million people would be kicked off SNAP or have their benefits reduced, and 265,000 kids would consequently lose automatic access to free meals at school, that wouldn’t be the end of the suffering—the travesty would continue as more people would lose benefits due to misplaced paperwork or being unable to meet a new work requirement due to a lack of transportation, or child care, or caring for a family member, or any number of reasons.

“States will be unable to provide the services expected of them. And rather than take on the cost of serving their clients … it’s very likely states will take the steps to cut them off all together,” says Rep. Marcia Fudge (D-OH).

Despite reports that more than half of households receiving SNAP are working households—a number that jumps to 80 percent in the years before and after qualifying for food benefits— Conaway wants to force recipients to provide proof that they are worthy of getting help with food. That they are, essentially, “legitimately poor.”

Fudge argued that a better approach would be to raise the minimum wage, noting that cafeteria employees in the building where the committee met that day made less than $2,000 a month, and therefore qualified for SNAP. “In fact,” she added, “raising the minimum wage to just $12 an hour would save about $53 billion in SNAP over 10 years.”

House Republicans on the committee didn’t seem to want to hear that side of the argument, though. Instead, by turning SNAP into a program like TANF, the amount of people able to get food assistance would dwindle. One can only assume that perhaps that’s the whole point.

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The Only Work the Farm Bill Will Create Is Paperwork https://talkpoverty.org/2018/04/20/work-farm-bill-will-create-paperwork/ Fri, 20 Apr 2018 18:55:24 +0000 https://talkpoverty.org/?p=25581 Last week, perhaps in an effort to mentally pull out of Montana’s long winter months, I organized my home office, working my way through a decade’s worth of various files, folders, and scraps of paper I’d saved for whatever reason. Some, like quotes or story ideas, I’d saved because I am a writer and writers do things like keep journals they wrote in when they were 10. Others, like pay stubs, taxes, utility bills, and child support documents, I’d held onto out of an old habit.

For several years, when I worked a scattered schedule of hours cleaning houses while putting myself through college and raising my young daughter on my own, I always carried around three months’ worth of income and expenses in a purple folder. Because of my irregular schedule, and the hand-written personal checks I received instead of pay stubs, it seemed as if I constantly needed to prove to someone that I was, in fact, in need. That I was verifiably poor.

The Supplemental Nutrition Assistance Program (SNAP, otherwise known as food stamps) was the one program we could rely on back then, even though it was difficult to sign up for it sometimes. It was, by all accounts, predictable, and something I could budget for. Most importantly, by checking the “SNAP” box on other paperwork, like my daughter’s free school lunches, our utility assistance through the Low-Income Home Energy Assistance Program (LIHEAP), and both of my daughters’ Medicaid, I automatically qualified for benefits. No questions, no long phone conversations, no missing work to spend an afternoon waiting to talk to a caseworker. This is called broad-based categorical eligibility, and it faces extinction, joining many other cuts in the House Agriculture Committee’s 2018 Farm Bill.

During almost six hours of recent debates over the bill, dubbed the “Conaway Bill” after Committee Chairman Mike Conaway (R-TX), who presented it without much sub-committee discussion beforehand, House Democrats spent the majority of the time angrily raking the proposed repeals and amendments surrounding the nutrition program focused on food insecurity.

“Call it whatever you want, it’s reducing the SNAP rolls.”

“This bill as it is written kicks people off the SNAP program,” the committee’s ranking member, Collin Peterson, a Democrat from Minnesota barked in his opening statements. “The chairman calls it self-selection. Call it whatever you want, it’s reducing the SNAP rolls.”

The “self-selection” Peterson is referring to is Conaway’s plan to force people to complete additional paperwork. SNAP would now require recipients to prove they have worked enough hours to qualify for the program by submitting statements at the end of every month. If a person fails to do this, they’d lose benefits for 12 months; the next time for 36. That’s four years of being ineligible for food benefits for not submitting a single piece of paper or failing to meet the work requirements for a single month. Conaway refers to this as self-selecting because he considers any failure to complete paperwork to be the same as a recipient opting out of the program on their own accord. Representative David Scott (D-GA) argued it was “additional duplicate confusing paperwork requirements” put in the bill “designed to confuse folks.”

When I was in need, I had to reapply for a program every few months, whether it was SNAP, WIC coupons for milk and cereal, or child care grants. Since I was self-employed and supplemented my income with student loans, I had to provide proof of the hours I spent in clients’ homes, either by receipt of deposit of monies earned or a statement from the client. It was exhausting, labor-intensive, and often meant many hours on the phone, or at the department’s office, waiting for several hours in line—time that cost me jobs and money.

By repealing the broad-based categorical eligibility, severing the link between SNAP and programs like free school lunches and LIHEAP, many people would be forced to submit applications for several kinds of benefits separately, even having to show actual utility bills to get the amounts deducted from their income. Currently, folks who qualify for LIHEAP get a standard utility allowance, much like the standardized deductions in taxes. “This is a backdoor way to kick people off the program,” said Rep. Sean Maloney (D-NY), calling out the unfairness in severing the ties between SNAP and LIHEAP. “You exempted elderly people from producing utility bills but you didn’t exempt disabled people.” In a later round of questioning, Maloney repeatedly asked the chairman and other committee members why this was, paused, and said their silence was the answer he needed.

In my office, I ran my hand over that weathered, purple folder before placing it in a larger one labeled “Single Mom Stuff.” A box full of old paperwork sat next to my feet, including a half-inch thick packet of documents I’d compiled just three years ago in an attempt to receive a grant for child care. In it, I’d tried to explain what I did as a freelance writer, and how I’d managed to work up until that point with a months-old infant and older kid in first grade. When the letter came to tell me I made $100 too much to qualify, I called my caseworker, who said, “Well, you work late at night when your children are sleeping, anyway, so you don’t really need child care.” I almost hissed at her that working until 2am wasn’t exactly by choice.

For 2 million people who would lose SNAP benefits under the new Farm Bill, and the millions of others who would eventually “self-select” to no longer receive them, either by not getting a utility bill or proof of work hours submitted on time, it undoubtedly won’t be by choice, either.

Editor’s note: This article has been updated to reflect the latest version of the proposed House Farm Bill. 

 

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