Why Does a Salad Cost More Than a Big Mac? If You Guessed Farm Subsidies, You Were Correct!

Aligning financial and marketing considerations with overall strategy is crucial in business. Politicians pay lip service to this notion, but as current debates suggest, individual interests often interfere.

In the case of nutrition and farm subsidies, the disconnect is stark.

The Good Medicine blog comments (Hat tip Barry Ritholtz):

"The Farm Bill, a massive piece of federal legislation making its way through Congress, governs what children are fed in schools and what food assistance programs can distribute to recipients. The bill provides billions of dollars in subsidies, much of which goes to huge agribusinesses producing feed crops, such as corn and soy, which are then fed to animals. By funding these crops, the government supports the production of meat and dairy products—the same products that contribute to our growing rates of obesity and chronic disease. Fruit and vegetable farmers, on the other hand, receive less than 1 percent of government subsidies.

The government also purchases surplus foods like cheese, milk, pork, and beef for distribution to food assistance programs—including school lunches. The government is not required to purchase nutritious foods.

When the House of Representatives debated the bill in July, PCRM, along with many other health and public interest groups, supported the Fairness in Farm and Food Policy Amendment, which was offered by Reps. Ron Kind (D-WI) and Jeff Flake (R-AZ). This amendment would have limited government subsidies of unhealthy foods, cut subsidies to millionaire farmers, and provided more money for nutrition and food assistance programs for Americans and impoverished children overseas.

Unfortunately, politics doomed the reform effort. At the eleventh hour, House Speaker Nancy Pelosi (D-CA) feared that freshman representatives who voted to cut subsidies might risk losing their seats in farm states in the 2008 elections, endangering the Democratic majority. The reform amendment was defeated 117 to 309.

Nonetheless, Congress did make some modest changes to the Farm Bill’s subsidy programs at the very last minute.

This fall, the Senate will have its turn debating and voting on the bill. PCRM will need your help again to encourage senators to cut subsidies for unhealthy foods and increase support for fruits, vegetables, and vegetarian foods. Other groups, including the American Medical Association and the President’s Cancer Panel, are also calling on Congress for sweeping reforms