By Scout Nelson
Recent budget proposals in Congress aim to expand federal farm subsidies, but most Minnesota farmers are unlikely to benefit. The House has passed its version of the bill, and the Senate is reviewing its own.
Key changes in the proposals include increasing crop price guarantees by up to 20%, making more farmland eligible for payments, raising individual payment caps to $155,000, and expanding eligibility to multiple members of corporate farms.
However, most Minnesota farms do not qualify for significant benefits. Of the over 65,000 farms in the state, only 4,662 received commodity subsidies in 2024. Farm’s size plays a major role in subsidy allocation, and Minnesota’s average farm size of 388 acres is smaller than the national average.
Wealthier farms receive most of the funds. In 2024, the top 10% of subsidy recipients collected 55% of total payments, while the bottom 80% received only 28%. The most significant subsidy increases will go to crops like rice, peanuts, and cotton—not Minnesota’s leading crops, which are corn and soybeans.
Another issue is that the subsidy expansion benefits corporate and pass-through entities. Yet only 3,803 Minnesota farms are set up this way, limiting the impact of these policy changes on local producers.
The proposed bills also cut food assistance programs such as SNAP. According to a previous analysis, 58 Minnesota counties could lose more in SNAP funding than they gain from increased farm subsidies. This could cost the state nearly $2 billion.
“Few Minnesota farmers benefit significantly from higher farm subsidies. Lawmakers should not cut desperately needed food assistance to help finance more payouts to relatively few farmers.”
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Categories: Minnesota, Crops, Corn, Soybeans, Government & Policy