US Soybean Subsidies

Between 1995-2005 US soybean growers were given $13 billion in federal subsidies. Payments peaked in 2001 at over $4 billion and have come down in recent years to $500,000 while corn surges ahead at over $9 billion. Most of these subsidies went to large farms earning about $3 million over ten years. More than 80% of all soybean subsidies went to farms in the top 20%. (All this comes from the Environmental Working Groups Farm Subsidy Database)

Farm subsidies are the favorite whipping boy of urban anti-corruption groups who see them as handouts that take money away from other worthy programs and suppress market forces endangering free trade. In part they are right. When soybean subsidies peaked in 2001 global soy prices reached an all time low. Also interesting is that total revenue from soybean sales appears independent of subsidies. Note the 2004 jump when subsidies were low.


Either way, President Bush has supported cutting farm subsidies in the 2007 farm bill, especially direct payments to large farms. However, public opinion still leans in favor of subsidies because America's food supply is too important to risk to economic fluctuations and farmer need protection from cheap labor overseas. Here's a survey that shows farmers and their subsidies still enjoy a great amount of public support nation wide.