Poverty Grows in Many Counties Alongside Higher Farm Subsidies

Many counties where federal crop insurance subsidies rose between 2008 and 2012 also had an increase in poverty over that period, a finding that undermines the oft-repeated arguments that farm subsidies help reduce rural poverty, an Environmental Working Group analysis shows.

The counties that saw the largest increases in crop insurance subsidies – as well as high rates of poverty – are in districts represented by three leaders of the House-Senate conference negotiating a final farm bill: Reps. Frank Lucas (R-Okla.), Michael Conaway (R-Texas) and Randy Neugebauer (R-Texas). Another district that had a large subsidy increase along with a high poverty rate is represented by House Majority Whip Kevin McCarthy (R-Calif.).

Left to right: Reps. Lucas, Conaway, Neugebauer

All three farm bill conferees voted to cut $39 billion from the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, and to defeat proposals to reduce and reform crop insurance subsidies.

While poverty rates and SNAP participation have risen nationwide, large farm businesses are enjoying record income, according to the U.S. Department of Agriculture. Nevertheless, taxpayer-funded crop insurance premium subsidies grew from $5.7 billion in 2008 to more than $7 billion in 2012. Billions more went directly to insurance companies to subsidize their operating expenses and payouts for crop losses – totaling more than $14 billion last year alone. During the 2008-2012 span, net farm income increased from $83.7 billion to $113.8 billion.

Nationwide, three of every four counties benefited from an increase in premium subsidy support between 2008 and 2012. What’s more, nearly all the counties that received the largest increases had poverty rates higher than the national average.

This interactive map shows the growth in crop insurance premium subsidies over the past four years and the change in poverty rates from 2003 to 2011 for every U.S. county. Click on a county to see the local trends.

https://a.tiles.mapbox.com/v3/ewg.wqwr8uxr/page.html?secure=1#5/40.847/-97.6904

Many of the counties that enjoyed the largest increases in crop insurance subsidies are in western Texas and are represented by Reps. Neugebauer and Conaway. From 2008 to 2012, the subsidies rose by $118 million in Neugebauer’s district, and by $40 million in Conaway’s. The poverty rate also rose in both districts and consistently exceeded the national average in most areas.

In the counties represented by Chairman Lucas, farmers received a $64 million increase in premium subsidies over the same 2008-2012 period. The subsidies rose in every county in his district – in two of them by more than $5 million. Meanwhile, poverty increased in two-thirds of the counties Lucas represents.

Click below to expand the chart and see how all 32 House members of the farm bill conference committee voted on increasing subsidies, reforming crop insurance and cutting SNAP funding, along with the trend in premium subsidies and the number of SNAP beneficiaries in that district.

House Farm Bill Conferees Vote on increasing farm subsidies (passed 216 - 208) Vote on reforming crop insurance (failed 208 - 217) Net increase in crop insurance premium subsidies in district 2008-2012 Vote on cutting SNAP by $39 billion (passed 217 - 210) Number of SNAP participants in district Rep. Dave Camp (R-Mich.) Yea Nay Y Yea 138,000 Rep. Michael Conaway (R-Texas) Yea Nay Y Yea 93,000 Rep. Jim Costa (D-Calif.) Nay Nay Y Nay 82,000 Rep. Rick Crawford (R-Ark.) Yea Nay Y Yea 163,000 Rep. Rodney Davis (R-Ill.) Yea Nay Yea 178,000 Rep. Suzan DelBene (D-Wash.) Nay Nay Y Nay 111,000 Rep. Jeff Denham (R-Calif.) Yea Nay Y Nay 200,000 Rep. Eliot Engel (D-N.Y.) Nay Yea Y NV 118,000 Rep. Marcia Fudge (D-Ohio) Nay Yea Nay 344,000 Rep. Sam Johnson (R-Texas) Yea Yea Y Yea 44,000 Rep. Steve King (R-Iowa) Yea Nay Yea 91,000 Rep. Sandy Levin (D-Mich.) Nay Yea Y Nay 254,000 Rep. Frank Lucas (R-Okla.) Yea Nay Y Yea 124,000 Rep. Tom Marino (R-Pa.) Yea Nay Yea 144,000 Rep. Jim McGovern (D-Mass.) Nay Yea Nay 99,000 Rep. Mike McIntyre (D-N.C.) Nay Nay Y Nay 99,000 Rep. Gloria Negrete McLeod (D-Calif.) NV Nay Y Nay 367,000 Rep. Randy Neugebauer (R-Texas) Yea Nay Y Yea 110,000 Rep. Kristi Noem (R-S.D.) Yea Nay Y Yea 105,000 Rep. Collin Peterson (D-Minn.) Nay Nay Y Nay 70,000 Rep. Martha Roby (R-Ala.) Yea Nay Y Yea 156,000 Rep. Mike Rogers (R-Ala.) Yea Nay Y Yea 179,000 Rep. Ed Royce (R-Calif.) Yea Yea Yea 100,000 Rep. Kurt Schrader (D-Ore.) Nay Yea Y Nay 164,000 Rep. Austin Scott (R-Ga.) Yea Nay Y Yea 207,000 Rep. Steve Southerland (R-Fla.) Yea Nay Y Yea 137,000 Rep. Glenn Thompson (R-Pa.) Yea Nay Y Yea 74,000 Rep. Filemon Vela (D-Texas) Nay Nay Y Nay 446,000 Rep. Tim Walz (D-Minn.) Nay Nay Y Nay 70,000 Show extended chart Show extended chart