10 Steps to Fix the US Budget

2. End USDA Subsidies

The Department of Agriculture offers a wide range of agricultural subsidies for farmers and exercises regulation over agricultural markets. It offers over 240 subsidy programs. The current subsidies have an adverse effects on markets and also encouraged environmentally harmful practices. The corn subsidies, for example, not only cause an artificially low price for corn which then displaces Latin American markets, but leads to more corn being planted than the US can consume or even sell. Government mandates on ethanol and tariffs on sugar imports help to manipulate the market to use more corn. But corn is one of the most soil depleting crops, leading to concerns that over planting will render too much US soil infertile. The elimination of agricultural subsidies would save the US taxpayers $30 billion annually.

Food subsidy programs, such as food stamps, should be turned over to state governments for them to best figure out how to administer. Forestry subsidies to state governments and private companies should be eliminated.

Annual Savings to the US taxpayer: $131 Billion