President Donald Trump convened what he known as the single-largest gathering of American farmers on the White Home on Friday, bringing collectively greater than 800 cowboy-hat-wearing women and men. They stuffed the South Garden alongside a shiny golden tractor because the president touted his assist for the agricultural business. “I just gave you $12 billion. I don’t know if you know that or not,” Trump boasted, referring to farm aid supplied by the USDA’s Farmer Bridge Help Program. Apparently that wasn’t sufficient as he then advised the group he requested Congress to approve extra aid within the subsequent funding invoice.
However a lot of the president’s assist is definitely falling into the arms of the rich, and a latest submit from the libertarian suppose tank the Cato Institute demonstrates that disparity. The info appears to problem the notion of a struggling farmer: the nationwide common revenue of a U.S. farm family in 2024 was $159,334. That’s roughly 32% above the nationwide imply family revenue, and practically double the nationwide median of $83,730.
And that’s not even bearing in mind nearly all of subsidies, which information exhibits are going to the highest 10% of farms. The submit cites a 2023 report from the Authorities Accountability Workplace (GAO), which revealed that over 1,300 farmers with an adjusted gross revenue of greater than $900,000 have obtained subsidies from the federal crop insurance coverage program.
The federal crop insurance coverage program was established in 1938 below President Franklin Delano Roosevelt to assist the agricultural sector reciver from the Nice Despair and the Mud Bowl. Since its inception, this system has developed right into a key assist pillar to offer producers with monetary safety in opposition to losses from pure disasters and financial downturns, similar to droughts, freezes, damaging winds, and value fluctuations. Whereas it started as a restoration measure, this system now covers greater than 120 distinctive commodities, representing the overwhelming majority of the worth of U.S. crop manufacturing.
“The subsidies are not an emergency safety net for poor farm families but rather permanent welfare for high-earning businesses,” Chris Edwards, an editor on the Cato Institute, wrote within the weblog submit. “The government often calls crop insurance ‘market based’ but that cannot be true because the program costs taxpayers billions of dollars a year.” Edwards added that as a result of there are not any revenue limits on crop insurance coverage, the highest 10% of farmers seize 56% of all subsidies in this system.
A security internet—or welfare for the rich?
Even some billionaire farmers obtain subsidies. A 2015 GAO report, for instance, cited that 4 people—who earned their wealth by quite a lot of sources along with farming, similar to mining, actual property, sports activities, and data expertise—with a internet price of $1.5 billion or larger participated within the federal crop insurance coverage program and obtained premium subsidies. The USDA withholds the names of sure farm subsidy recipients, so it’s not precisely clear which rich farmers obtained the subsidies.
A golden tractor throughout President Trump’s farmers occasion on the South Garden.
Graeme Sloan/Bloomberg through Getty Pictures
Tariffs and the rising value of inputs are inserting a lot of America’s breadbasket into an more and more precarious monetary place. The Iran warfare is driving up vitality prices and fertilizer costs. On prime of that, some farms are dealing with stress from the AI business as companies look to transform farmland into information facilities. Trump claimed Thursday U.S. farmers have been mistreated by some nations, and mentioned he was taking motion to assist an business battered by rising gas and fertilizer costs brought on by the Iran warfare.
In complete, taxpayers are anticipated to pay $14.7 billion in 2026 for the federal crop insurance coverage program, nonetheless only a fraction of the $7 trillion the U.S. spent in 2025, however a large sum, similar to the dimensions of federal businesses just like the Environmental Safety Company. Out of that $14.7 billion, about $9.6 billion goes to farmers, the opposite $5.1 billion to insurance coverage corporations. Spending on this system is just anticipated to rise, in line with the Congressional Finances Workplace.
That development has drawn critics, like Edwards, who argues this system advantages insurers as a lot because it does farmers. “The crop insurance program is like the government giving you $900 a year for your $1,500 car insurance premium, all while paying billions of dollars to GEICO, State Farm, and other insurance firms to boost their profits,” Edwards wrote.
