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David vs. Goliath Farm policies favor agribuisiness over family farms Handicapped by state and federal farm policies that favor giant agribusiness, Indiana's small- to medium-sized farms face a constant struggle for economic survival. "Market prices paid by agribusiness corporations are well below farmer production costs," said CAC's Regional and Statewide Farm Coordinator Jim Hoyer. "Therefore, farmers must rely on government payments for cash flow. But the bulk of these payments end up going to the largest producers, forcing smaller farms to either call it quits or seek significant sources of off-farm income." Hoyer coordinates the Campaign for Economic Justice, which seeks to help farmers generate livable incomes through farm policies that encourage fair market prices. "Currently, there is no mechanism that would force grain buyers to pay farmers a decent price for corn, soybeans, or wheat," said Hoyer. "In order to survive without government subsidies, Hoosier farmers would have to receive almost $3.50 a bushel for corn. However, Cargill is paying less than $2 a bushel. They're basically stealing our farmers' grain, but they aren't passing that savings on to consumers, who see increasing prices at the grocery store." The Campaign for Economic Justice has partnered with the newly formed National Farm Action Campaign (NFAC) to advocate for major changes in federal farm policy that would correct that uncompetitive situation. Their program would force large grain buying corporations like Cargill, Con-Agra, Archer Daniels Midland (ADM) and Tyson to pay Hoosier farmers a fair price for commodities. The adverse impacts from current farm policies on traditional family farms do not end there, Hoyer said. They also favor huge confined feeding operations. Most family farms raise feed, such as corn and soybean meal, for their own livestock, he said. Therefore, they are more efficient than large feeding operations that must purchase feed and transport it back to the farm. "But with market prices at 20-year lows for all major commodities, giant livestock feeding facilities can purchase all of their feed at prices that are well below farmer production costs," he said. "They can therefore raise livestock cheaper than farmers who grow their own feed, even though family farms are much more efficient and environmentally friendly." The problems created by ill-advised farm policies are exacerbated by the high cost of borrowing money, according to Hoosier family farmer Francis Bradley, a CAC board member who was instrumental in founding the Campaign for Economic Justice. "Farmers simply cannot survive when the cost of money is greater than their rate of return to equity," Bradley said. "With prices as low as they are, we're lucky if we see any return at all."
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