DALHART, Tex. By any measure, Lanny Bezner is a
successful family farmer. His eldest son, John, rides herd
over his cattle, spread out on pastureland from here to nearby
New Mexico. A younger son, Brian, looks after the farm's
heavily irrigated cornfields, with help from the husband of
Mr. Bezner's daughter, Virginia. As a Texas patriarch, Mr.
Bezner rigorously sticks to the principle that economy of
scale is the only way to survive in modern farming. The bigger
the farm, the better likelihood of turning a profit, he says.
By buying adjacent fields, he has expanded his cropland
from its original 700 acres to more than 8,000. In five years
he has doubled his grazing land by leasing 90,000 acres of
pasture. He owns a fleet of tractors and heavy farm equipment;
he fills their tanks with fuel from his own gas pumps. He
dries and stores his harvest in his own imposing grain
elevators, which hold more than a million bushels of corn.
Surveying the farm that he carved out in the Panhandle
landscape of dry mesquite and sagebrush, Mr. Bezner says the
key to his family's prosperity is federal farm subsidies.
"We're successful primarily because of government
help," said Mr. Bezner, 59, an entomologist who grew up
on a farm outside Amarillo.
Although Mr. Bezner hesitated to discuss the size of those
subsidies (and refused to divulge how much he makes without
federal help, or what his expenses are), government documents
show that in the last four years of the 1990's, he received
$1.38 million in direct federal payments.
Most remarkably, Mr. Bezner and the other big farmers here
in Hartley County and across the country received those
record-breaking payments in an era when farm subsidies were
slated for extinction.
Under the Freedom to Farm Act of 1996, swept up in the
language of the Republican revolution under Speaker Newt
Gingrich, farmers who planted row crops corn, wheat,
soybeans, rice or cotton were freed from government
production controls. In exchange for being able to plant what
they wanted, they were told, they would have their subsidies
gradually phased out.
While farmers embraced their new freedom to decide what to
plant, they balked at accepting the rigors of the free market.
When prices for their crops held stagnant and their costs
rose, farmers lobbied Congress for "emergency"
payments.
Their friends in Congress relented. Instead of diminishing,
the subsidies have nearly tripled with steep emergency
payments that reached $22 billion last year, according to
Keith Collins, the top economist at the Agriculture
Department.
Supporters of farm subsidies, which were enacted in the
Depression, argue that they are needed to save the family
farm. But government documents indicate that the prime
beneficiaries hardly fit the image of small, hardscrabble
farmers. Because eligibility is based on acreage planted with
subsidized crops in the past, the farmers who have the biggest
spreads benefit the most, according to the Environmental
Working Group, a nonprofit advocacy organization that obtained
government records of farm subsidies through the Freedom of
Information Act.
"The data shows that government subsidies are tilting
the playing field in favor of the largest farms," said
Clark Williams-Derry, the senior analyst at the Environmental
Working Group who created a national database of subsidies.
Mr. Bezner, who saw his direct federal payments balloon
from $164,621 in 1996 to $741,839 in 1999, is one of the elite
10 percent of American farmers who receive 61 percent of the
billions of dollars the program distributes. The subsidies
have been a chief source of capital for large operators to
expand their holdings, often by buying out their smaller
neighbors.
And unlike other federal entitlement programs, farm
subsidies have no requirements of income, assets or debts.
Friends in High Places
As Congress considers reauthorizing the Freedom to Farm
Act, lawmakers have already made one fundamental decision:
they will keep the subsidies. The phaseouts are a thing of the
past.
The cost, and the fact that the money goes mostly to a
select few, will be at the crux of the debate over how to
reshape subsidies.
"The cost of this program is astonishing," Mr.
Collins said. "Any person engaged in small business in
America would be amazed looking at this. Their jaws would drop
at the money farmers receive."
Mr. Bezner makes no apologies for accepting the money. To
his mind, government subsidies help the American consumer by
making sure grocery stores are stocked with inexpensive food.
"That government money is keeping cheap cereal on the
shelves in New York City," he said.
And no one expects farmers to lose their subsidies not
with the friends they have in Congress.
The top leaders of both parties represent farm states that
rely on subsidies. In the Senate, the majority leader is from
Mississippi and the minority leader from South Dakota. In the
House, the speaker is from Illinois and the minority leader
from Missouri. The relevant committees are headed by
representatives from farm states; the chairman of the House
Agriculture Committee is Representative Larry Combest, a
Republican who represents Mr. Bezner's district in the
northern plains of Texas.
"Look at the Nasdaq: those companies are going out of
business and we don't open up the Treasury to them," Mr.
Collins said. "But Congress chose not to let farmers bear
that kind of pain."
Like their counterparts in Hartley County, large farmers
around the country have complained to Congress that Freedom to
Farm is not working because their crops are selling at the
same low prices their grandfathers' crops fetched 40 years
ago.
When lawmakers passed the act in 1996, they approved
generous subsidies for the first two years in order to give
farmers a cushion to prepare for their independence. But when
the world market pushed prices down, farmers asked for
emergency payments.
In 1998, Congress approved additional money, adding 50
percent to the core subsidy payments. In 1999 and 2000, the
lawmakers doubled the core payments. This month, with the
strong backing of the White House, Congress added $5.5 billion
to next year's budget blueprint to cover potential
emergencies.
The concentration of payments will remain the same: the
wheat-growing plains states from the Texas Panhandle through
North Dakota; the Corn Belt across the Midwest; and the rice
and cotton states of the Mississippi Valley from Missouri
through Louisiana.
While there are other subsidy programs, like those for
dairy farmers and sugar producers, the row-crop payments are
by far the biggest. Ranchers, and farmers who produce fruits
and vegetables, receive virtually nothing from this program.
Representative Combest said he had concluded that the
subsidy system should remain intact. His one minor proposal is
to cut subsidies when farmers receive higher prices for their
crops what he calls a "countercyclical"
approach.
Who Benefits?
Even though President Bush has promised to eliminate what
he calls corporate welfare, Mr. Combest and some Republican
leaders see no contradiction between the farm payments and
Republican free-market orthodoxy. They contend that the
subsidy is meant to help the consumer, not the farmer.
"The consuming public has been the beneficiary of this
program that gives money to farmers to produce low-price
commodities," Mr. Combest said in an interview. "We
don't want to become as dependent on foreign food as foreign
oil."
Those emotional appeals fall flat with his counterpart,
Senator Richard G. Lugar, the Republican from Indiana who is
chairman of the Senate Agriculture Committee.
"Let's not make a mistake that these subsidies are
pro-consumer; they are pro-producer," Senator Lugar said
in an interview. "There would be extraordinarily adequate
supplies of food in America if you had no control and no
subsidies."
Senator Lugar said he wanted a revised farm policy to
provide more money to conserve land, improve rural communities
and help farmers who are not doing well.
He also said he was under no illusion about the effect of
the multibillion-dollar payments.
"The rhetoric of failing farms doesn't always match
the reality, because large commercial farmers are doing well
with their subsidies; their land values have gone up and so
have land rents," Mr. Lugar said.
Eight percent of the country's farms produce 72 percent of
the country's harvest. Most of the rest of the two million
American farmers earn their incomes from jobs off the land.
Instead, Senator Lugar said, these crop subsidies are a
direct transfer of taxpayers' money to rural landowners.
"Is the American public willing to spend money each year
and every year providing a transfer payment from the taxpayers
to the agricultural sector?" he asked. "And how much
5 billion, 10 billion, 15 billion?"
What no lawmaker is expected to do is ask farmers to prove
they need the subsidies.
"This is not meant to be a welfare program, and it
won't be not if I have anything to do with it,"
Representative Combest said.
Agriculture economists say such an argument misses the
point.
"In our food stamp program we means-test the working
poor with strict requirements, but we ask nothing of
farmers," said Mr. Collins, the Agriculture Department
economist, who called the subsidies "an income supplement
from the government."
Where the Money Goes
Even in Mr. Combest's Congressional district, where federal
subsidies make up more than one-third of the total farm
income, Hartley County holds a special place. The top 10
percent of the county's subsidy recipients were paid an
average $396,131 from 1996 to 1999 more than double the
national average.
And in the pecking order, Lanny Bezner ranks third. Two
other Hartley County farmers received more money: John Cover,
whose subsidies totaled $2.3 million over that period, and
Carl Kupyer, who received $1.9 million.
With subsidies of that size, those families rank among the
top 10 recipients in Texas and the top 100 in the country.
Yet the Kupyer family considers the subsidies barely large
enough to keep it in business, according to J. C. Kupyer, who
works with his father, Carl.
"We do make a living as farmers," J. C. Kupyer
said. "But actually it would be hard to farm without
subsidies."
For three generations the Kupyers have been adding to their
property, building their farm from less than 700 acres to a
16,000-acre spread that they now own free and clear. Yet with
spiraling energy costs, Mr. Kupyer said, the family would sell
the farm if someone offered to buy it.
Mr. Cover refused to discuss his subsidies.
Andy Michael, the Hartley County commissioner and a
rancher, said he discounted many complaints from big farmers
like Mr. Kupyer. In his view, farmers complain to cover up how
much money they are receiving from the government.
"The farmers are very closemouthed about getting help
from the government they never, never talk about it,"
Mr. Michael said. "Farmers work the system. There's no
system for us to work."
In the last five years, he said, the classic divide between
farmers and ranchers, exploited in generations of cowboy
movies, has gotten worse, because farmers are receiving bigger
subsidy checks while ranchers get nothing.
"Any time I'm around farmers they say farming doesn't
pay, but then they go out and buy those $150,000 tractors with
their government checks," Mr. Michael said. "When
times are tough for us, the rancher just tightens his
belt."
Business is good for Mr. Michael and many other farmers and
ranchers in Dalhart, a town of more than 7,000 people midway
between Dallas and Denver. Local farm equipment dealers report
that despite the downturn in crop prices, their sales of
tractors and other equipment are among the best in the
country.
At the John Deere dealership, farmers have spent $13
million to $21 million on agricultural equipment every year
since Freedom to Farm was enacted. "This is one of
Deere's strongest markets," said Mark Miller, finance
manager at the Dalhart dealership.
Ralph Link is a Hartley County farmer who cannot afford new
tractors. He works his 845-acre spread himself with used
equipment and received $173,787 in subsidies the first four
years of Freedom to Farm.
But unlike his neighbors with larger farms, Mr. Link has
nothing but praise for the prosperity that comes with federal
checks. With his new freedom, Mr. Link has been able to take
advantage of the region's shift toward agribusiness and plant
all his cropland in corn, selling it to one of the huge cattle
feedlots.
In bad times, he says, the checks provide a safety net. In
good times, like the current season, the subsidies will
provide him with a good profit this season, he says, it
will be 18 percent.
"The government payments are bigger since Freedom to
Farm, so I don't understand why you wouldn't like it,"
Mr. Link said. "Things couldn't be better." |