Farm bill signed into law

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June 2002

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Farm bill signed into law
Despite years of partisan politicking on both sides of the aisle about reforming what critics call a corrupt system of agricultural subsidies, a new farm bill was signed into law on May 13 and actually increases subsidy expenditures by $83 billion.

In a press release, the National Catholic Rural Life Council expressed its disappointment with the legislation it says will enable large-scale operations to "continue to pocket millions of dollars, while limiting the ability of smaller family farms to compete and survive."

NCRLC cites one "basic flaw" in the new law: "Most of the money goes to subsidize farm output, a curious policy that stimulates supply, drives down prices, and hurts the farmers it is meant to help."

Robert Gronski, Policy Coordinator at NCRLC, said, "While the law has some good points, as a whole—looking at long-term effects—it is disappointing. Our question is how do we keep a family farm out there, producing food for other families? The farm bill had an opportunity to make a difference here and it missed that opportunity."

The farm bill passed through many stages before becoming the Farm Security and Rural Investment Act of 2002, stalling at times in both houses of Congress before reaching the committee where it was re-negotiated and a brand new subsidy program for peanut farmers was even added to already complex legislation.

The Senate version of the bill eliminated many loopholes and lowered payment limits—revisions endorsed by the House Agriculture Committee. But an analysis by the Sustainable Agriculture Coalition and the Midwest Sustainable Agriculture Working Group reveals that by the time the bill reached President Bush's desk the loopholes had returned and the payment limits rose from $160,000 to $210,000.

Gronski said, "Subsidies are necessary for the viability of farms, but without payment limitations the big get bigger and the small get squeezed out. Just like the 1996 'Freedom to Farm' Act became known as the 'Freedom to Fail' Act, the 2002 bill will lead to farm insecurity and rural disinvestment."

Among the positive points NCRLC sees in the law are the restoration of food stamps to legal immigrants and funding for conservation programs. "Increased incentives for farmers who are good stewards of the land will help the smaller guys stay on their land, but they are still competing against much larger dollars in subsidies to the big farms," Gronski said. The legislation also provides funding for organic farming research as well as a mandate for country of origin labeling on many food products.

Though NCRLC "laments the lack of vision in U.S. agricultural policy," it says "the passage of the 2002 farm bill does not end the cause of social justice. New legislation and policy initiatives will continue on state and federal levels by family farm groups around the country."—Tara Dix

For more information:
NCRLC's farm bill campaign
Wins and losses "score sheet"
Reactions by other organizations to farm bill

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