The Farm Bill and How It Hurts Farmers In Africa

Submitted by Ethan Kiczek on August 16, 2007 - 6:10am.

The NY Times is reporting that CARE is rejecting $45 million a year in federal funds to protest the system of food aid which is hurting farmers in African countries. This all stems from the US "Farm Bill" subsidies, which encourage agribusiness to overproduce crops via subsidies. The extras are sent to Africa, where they become more attractive than locally-grown goods because of the low price.

It's amazing that yet another well-intentioned idea like the Farm Bill -- which decades ago helped small farmers during tough times -- is now a well established form of corporate, agribusiness welfare. Oh, and it also has the added side effect of messing with small farmers halfway around the world.

From the article:

CARE, one of the world’s biggest charities, is walking away from some $45 million a year in federal financing, saying American food aid is not only plagued with inefficiencies, but also may hurt some of the very poor people it aims to help.

CARE’s idea is that a profitable business is more likely than a charitable venture to survive when foreign aid runs out.

“What’s happened to humanitarian organizations over the years is that a lot of us have become contractors on behalf of the government,” said Mr. Odo of CARE. “That’s sad but true. It compromised our ability to speak up when things went wrong.”

Link to the NY Times article.