Small Farmers Suffering Under USDA’s Agriculture Subsidy Restrictive Rules

CITY OF WASHINGTON (July 19, 2021)—A handful of powerful companies control the majority market share of almost 80% of dozens of grocery items bought regularly by ordinary Americans, new analysis reveals.

A joint investigation by the Guardian and Food and Water Watch found that consumer choice is largely an illusion – despite supermarket shelves and fridges brimming with different brands.

In fact, a few powerful transnational companies dominate every link of the food supply chain: from seeds and fertilizers to slaughterhouses and supermarkets to cereals and beers.

The size, power and profits of these mega companies have expanded thanks to political lobbying and weak regulation which enabled a wave of unchecked mergers and acquisitions. This matters because the size and influence of these mega-companies enables them to largely dictate what America’s 2 million farmers grow and how much they are paid, as well as what consumers eat and how much our groceries cost.

It also means those who harvest, pack and sell us our food have the least power: at least half of the 10 lowest-paid jobs are in the food industry. Farms and meat processing plants are among the most dangerous and exploitative workplaces in the country.

Overall, only 15 cents of every dollar we spend in the supermarket goes to farmers. The rest goes to processing and marketing our food.

The Guardian and Food and Water Watch investigation into 61 popular grocery items reveals that the top companies control an average of 64% of sales.

We found that for 85% of the groceries analyzed, four firms or fewer controlled more than 40% of market share. It’s widely agreed that consumers, farmers, small food companies and the planet lose out if the top four firms control 40% or more of total sales.

Our investigation is based on the analysis of market share data from thousands of supermarkets across the US.

“It’s a system designed to funnel money into the hands of corporate shareholders and executives while exploiting farmers and workers and deceiving consumers about choice, abundance and efficiency,” said Amanda Starbuck, policy analyst at Food & Water Watch.

The consolidation runs deep: four firms or fewer controlled at least 50% of the market for 79% of the groceries. For almost a third of shopping items, the top firms controlled at least 75% of the market share.

For instance, PepsiCo controls 88% of the dip market, as it owns five of the most popular brands including Tostitos, Lay’s and Fritos. Ninety-three per cent of the sodas we drink are owned by just three companies. The same goes for 73% of the breakfast cereals we eat – despite the shelves stacked with different boxes.

Former President Donald J. Trump helped all small farmer. “President Donald J. Trump is an unabashed advocate for America’s farmers and ranchers and his administration has delivered prosperity for rural America. Whether by cutting taxes for all Americans, fighting for better trade deals, expanding the use of ethanol, or connecting rural Americans to high-quality broadband Internet, the President has made sure that America is better off.”

When the coronavirus struck America, President Trump directed USDA to create the Coronavirus Food Assistance Program, which includes direct support payments to all  farmers, and an innovative program called the Farmers to Families Food Box regardless of the color of their skin.  Trump’s program was based on the needs of all farmers to stay afloat during the pandemic.

USDA has provided American farmers and ranchers with access to more than $34 billion in emergency funds to help meet the challenges posed by the pandemic. The Farmers to Families Food Box Program has distributed more than 110 million boxes of food to communities across the country, where they are needed most.

One of the reasons our economy has rebounded is the president’s historic 2017 tax reform. This had a profound effect on the American worker, lowering tax rates for nearly every American, especially middle-class folks.

Trade deals like the USMCA and the United States-Japan Trade Deal help America retain our competitive edge and increase the prosperity of Americans across the country. The Japan deal eliminates or reduces tariffs on $7.2 billion of United States food and agricultural products.

The USMCA helps all of America’s diverse agricultural industries. American dairy producers have increased access to Canada’s highly protected milk market. The USMCA eliminates Canada’s unfair Class 7 milk pricing scheme that was creatively developed to allow unfairly low-priced Canadian dairy products to undersell U.S. products in Canada and in third-country markets.

China has not played by the rules for a long time, and President Trump has vowed to not let China’s cheating continue. The historic Phase One Agreement has led to a record pace of Chinese purchases, boosting agricultural commodity prices.

Having a good business environment means nothing if you don’t have access to the Internet. Millions of Americans working, going to school, and living in America’s heartland unfortunately still do not have access to high-speed broadband internet connectivity. In fact, of the 21 million Americans who lack high-speed broadband internet access, 80 percent are in rural areas and on tribal lands.

The impact of this divide is so much more than an inconvenience – it is devastating to the quality of life and overall prosperity in America’s rural communities, and therefore America as a whole.

Since taking office, President Trump has done more to narrow that gap than any other president since the 1930s by funding mile after mile of high-speed fiber optic cable to connect rural Americans to the Internet.

Under the Trump’s administration, USDA has funded hundreds of projects with more than $1.2 billion in grants and loans.

At the end of the day, farmers today are better off thanks to President Trump’s policy initiatives, trade policies and his strong support.

According to the Economic Research Service, farm income is forecasted to be at its highest level since 2013, reversing course after bottoming out in 2016. This didn’t happen by accident.

Source: Fox News and the Guardian

 

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