Congress Wasted $19.2 Billion Subsidizing Junk Food Ingredients Since 1995

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Recently Passed Farm Bill Continues to Funnel Billions to Largest Agribusinesses

CoPIRG

Denver – Federal agricultural policy has wasted $19.2 billion subsidizing junk food ingredients like high-fructose corn syrup according to a new report, Apples to Twinkies 2013, released today by the consumer advocacy group CoPIRG.  Unveiling the report at Clear Creek Organics Farm in Wheat Ridge, CoPIRG highlighted that most of these subsidies go to the largest, most profitable agribusinesses and support mainly the growing of commodity crops like corn and soy which does not reflect the priorities of average Coloradans.

“Thousands of Coloradans are joining us in calling for Congress to end these wasteful agricultural subsidy programs that send billions of taxpayer dollars to companies that need it the least,” said Director Danny Katz holding stacks of petitions that CoPIRG staff have collected from Coloradans across the state. “It is wasteful and only undermines our ability to tackle the current obesity epidemic.”

According to the report, between 1995 and 2012, American taxpayers spent more than $290 billion in agricultural subsidies. The payments are highly concentrated, with 75 percent of the subsidies going to just 3.8 percent of farmers. 69% of Colorado farmers receive nothing. The subsidies mainly support just a few commodity crops, like corn and soybeans. Among other uses, food manufacturers process corn and soy crops into additives like high-fructose corn syrup and vegetable oils that provide a cheap dose of sweetness and fat to a wide variety of junk food products.

“At a time when we have heard a lot of talk about reigning in our federal deficits, it is disappointing that many members of Congress have supported reauthorizing a Farm Bill that does very little to cut this wasteful and harmful taxpayer handouts. It clearly does not reflect the values of Coloradans,” said Katz pointing to a display of Colorado gardens that showed the disconnect between the fruits and vegetables Coloradans grow in their backyards and the corn and soy that Congress chooses to funnel taxpayer dollars to.

CoPIRG’s report release comes a week after the U.S. House of Representatives passed a Farm Bill that remained bloated with giveaways to Big Agribusinesses.  As the bill heads to conference committee with the Senate’s own stuffed version, CoPIRG continues to push for policies like a cap on crop insurance subsidies. Colorado Representatives DeGette, Polis, Lamborn and Coffman all supported an amendment that would have, among other things, eliminated crop insurance premium subsidies for agribusinesses making more than $250,000 a year, saving taxpayers $9.3 billion over the next decade. Unfortunately, the amendment ultimately failed and many Colorado Representatives voted to move a Farm Bill forward chalked with taxpayer giveaways.

“Unfortunately, the final bill, supported by Representatives Tipton, Coffman, Gardner and Lamborn, left the door wide open to continue to waste huge amounts of taxpayer dollars by subsidizing Big Ag and junk food ingredients,” said Katz.

Among the report’s key findings:

  • Between 1995 and 2012, more than $19 billion in tax dollars subsidized four common food additives — corn syrup, high-fructose corn syrup, cornstarch, and soy oils (better known as hydrogenated vegetable oils). At $7.30 per taxpayer per year, that would buy each taxpayer 20 Twinkies.
  • Outside of commodity crops, other agricultural products received very little in federal subsidies. Since 1995, taxpayers spent only $689 million subsidizing apples, which is the only significant federal subsidy of fresh fruits or vegetables. Coming to 26 cents per taxpayer per year — that would buy less than half of one Red Delicious apple. 
  • Colorado residents’ share of the expense for junk food subsidies is about $17,627,185 each year on average, compared with just $632,559 in subsidies for apples.

“It’s not too late for our members of Congress to stand with Colorado taxpayers and demand that any bill that comes out of conference committee eliminates handouts to the biggest, most profitable agribusinesses,” said Katz.

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