The Farm Bill is a capitalist tool designed to benefit politicians at the cost of the average american

If farm subsidies are bad economics, why do they persist? They serve the direct interests of a small group – farmers are less than 1% of the U.S. population -- at the cost to the much more numerous taxpayers. Among agriculture-heavy states and districts, it is well understood that members of Congress will almost always vote against any amendment that scales back farm subsidies. [3][5] Moreover, Congress’s agricultural committees tend to be dominated by lawmakers from farming states and districts. [6]

Farm subsidies continue on as a manifestation of crony capitalism, where politicians implement policies benefitting their narrowly focused constituencies but at the cost of the country as a whole. In exchange, farmers provide support and even campaign donations to keep these politicians in office. The fact that the farm subsidies have persisted for so long indicates just how powerful are the interest groups behind these subsidies. Indeed, years ago President George W. Bush vetoed the 2008 bill due to the cost increase over the previous bill -- a 47% increase – only to see his veto overridden by Congress.[7]

Farm subsidies in their various formulations may have been well-intended at their start, but over time they have evolved into a prime example of crony capitalism. Their existence encourages “political entrepreneurs” who get ahead through rent-seeking – in this case, the unproductive or even counterproductive effort to extract additional transfers from taxpayers. These efforts come at the expense of innovation and of management based on market incentives. This does not mean that farmers are not innovative or sound managers. Rather, the incentives embedded in the subsidies redirect their efforts and practices toward decisions that are less than optimal from the market perspective. The incentives result in greater transfers and these transfers lead to higher taxes, higher food costs, and economic inefficiency. Farm subsidies represent an inefficient use of the federal tax revenues, cause resource misallocation in the farming sector, and redistribute income in the wrong direction. Perhaps even more importantly, by rewarding rent-seeking, these farm subsidies reduce support for the free enterprise system.