How the government funds farmers
Agricultural subsidies came about in 1933 as part of the New Deal. Back then, they were primarily for farmers in exchange for reducing or producing certain commodity crops. The program has since expanded to help farmers with disaster relief, risk management, developing farming practices, and conservation efforts. Congress revisits the Farm Bill about every five years, with the most recent one being passed in 2018. Here are the facts to consider as Congress works on the next bill.
- In 2024, the government provided $9.3 billion in subsidy payments to farmers for commodity crops. This type of subsidy has added an average of $17.6 billion (adjusted for inflation) to farm income annually from 1933 to 2024. The lowest total was in 1949, at $2.4 billion, and the highest was in 2020, at $55.3 billion, primarily due to pandemic-related aid.
- Farm subsidies have contributed an average of 13.5% of net farm income since their inception. Subsidies reached a peak of 40.5% of net farm income in 2000. By 2024, they accounted for 5.9%.
- Corn was the most subsidized crop last year, accounting for $3.2 billion, or 30.5% of federal farm subsidies. Corn is a jack-of-all-trades, used for livestock feed, ethanol production, and food products (including sweeteners like high-fructose corn syrup, oils, starches, and beverages, both alcoholic and non-alcoholic). Soybeans were second with $1.9 billion, or 17.9% of all subsidies.
- Three other commodities — cotton, wheat, and pastureland — accounted for another 25.9% of subsidies. The remaining 25.7% was split among 130 other commodities.
How many Americans are in poverty?
The poverty rate is the percentage of people with a household income below the government’s poverty threshold. In 2023, 11.1% of the US population lived under this threshold. That means about 36.8 million people didn’t have enough money to pay for food, housing, healthcare, and other basic needs.
- The US Census Bureau updates the poverty threshold annually. In 2023, the poverty threshold for a single person was $15,480. For a family of four, it averaged $31,200.
- The poverty rate has decreased over the past 65 years: In 1960, 22.2% of the population was under the poverty threshold, and the rate has lowered since then. The rate spikes during economic recessions.
- The poverty threshold is the same in all states, though guidelines for some program eligibility are adjusted for Hawaii and Alaska. In 2023, Louisiana residents had the highest poverty rate, 18.9%, while New Hampshire had the lowest, 7.2%.
- The poverty rate varies by demographics, including race and family type. About 4.6% of married couples are under the poverty line, but 21.8% of single female-led households are. Children are more likely than adults to live in poverty: in 2023, 15.3% of children were under the poverty threshold, while 9.7% of people ages 65 and over were. Meanwhile, 21.2% of Native American people are below the poverty line, the highest rate of any racial or ethnic group.
Data behind the news
Tropical Storm Henriettestrengthened into a hurricane yesterday over the Pacific Ocean. USAFacts has a new page tracking activity this hurricane season.
The Environmental Protection Agency has published its proposal to repeal greenhouse gas emissions regulations from the Clean Air Act.
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One last fact
The Constitution states that Congress has the sole authority to admit new states to the union. Most states are formed by drafting a state constitution and submitting it to Congress for approval. Once approved, it passes an Act of Admission, which the president must sign.
In 1787, Delaware became the first state to ratify the Constitution and the first state admitted to the union. Hawaii was the most recent of the 50 states, added in 1959.