While many experts agree that farming should move toward a market-oriented economy, they caution against pulling the subsidy plug. Neil Harl, an Iowa State University agricultural economist, says the industry isn’t as healthy as it looks; eliminating the program, others say, wuld sink the farm economy into another crisis. Subsidies are also needed to assure a steady food supply. Harl notes that during the 1988 drought, the country drew on surplus grain supplies built up because oof earlier payments to farmers.
Still, this year’s $55 billion bill faces a tough fight. Among the targets: farmers with incomes over $100,000, peanut subsidies and sugar supports. A growing number of farmers would like to see subsidies end–provided foreign governments stop supporting their farmers, too. On a level playing field, they think they could capture a bigger share of the world market–and make more money than they do on the dole.
