Trump’s ‘Big Beautiful Bill’ Would Boost Subsidies for Rich Farmers

At the same time, “subsidies increase land prices, which benefits wealthy landowners at the expense of the many farmers who rent,” writes Nan Swift of the R Street Institute. “Young farmers can’t afford to rent or buy land at inflated prices. Likewise, young farmers often have smaller farms that don’t benefit from the primary federal subsidy programs.”

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That “farm safety net” comprises most agricultural subsidy spending in any given year. It includes price and revenue guarantees for certain crops, ensuring farmers earn a set minimum on staples like corn and soybeans, as well as crop insurance assistance, covering up to 60 percent of farmers’ insurance premiums in the event of price declines or poor harvests.

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Price minimums inherently distort the market, causing farmers to prioritize favored crops even if others would be better suited to the growing conditions—after all, if you’re guaranteed a minimum price for what you sell, and you’re covered for what doesn’t grow, what do you have to lose?