By "high-income farmers," we mean relative to typical households and other farmers. In 2021, the average farm household earned about $135k (about a third above the US average). Only 2% of farm households fell below the US median household net wealth. On top of that, agricultural subsidies disproportionately flow to the largest and wealthiest farmers. For example, the largest 10% of farms receive roughly 60% of payments under three major programs.
As to what and where, it depends on the program. Commodity supports (like price floors) mostly flow to corn, soybeans, wheat, cotton, and rice, which are grown in the Midwest and South. For ECP, payouts are triggered by disaster losses (floods, droughts, etc.), so the what and where can fluctuate each year depending on weather.
What are "high income farmer? What do they farm and where?
Hi George,
By "high-income farmers," we mean relative to typical households and other farmers. In 2021, the average farm household earned about $135k (about a third above the US average). Only 2% of farm households fell below the US median household net wealth. On top of that, agricultural subsidies disproportionately flow to the largest and wealthiest farmers. For example, the largest 10% of farms receive roughly 60% of payments under three major programs.
As to what and where, it depends on the program. Commodity supports (like price floors) mostly flow to corn, soybeans, wheat, cotton, and rice, which are grown in the Midwest and South. For ECP, payouts are triggered by disaster losses (floods, droughts, etc.), so the what and where can fluctuate each year depending on weather.
I recommend reading Chris's paper if you want to learn more: https://www.cato.org/briefing-paper/cutting-federal-farm-subsidies#reasons-repeal-farm-subsidies