Report: Factory Farmers Getting Federal Subsidies

Industrial hog and dairy operations are subsidized through the Environmental Quality Incentives Program (EQIP), according to a report released in December. Industrial Livestock at the Taxpayer Trough  estimates that $35 million per year in taxpayer support went to 1,000 CAFOs from 2003-2007.

"This report demonstrates what family farmers have known for years – this corporate-controlled industrial model of livestock production can't survive without taxpayer support," said Rhonda Perry, a livestock farmer from Missouri in an Iowa CCI press release.

Originally established as part of the 1996 Farm Bill, EQIP was to help family farmers incorporate conservation practices. However, the 2002 Farm Bill opened the program up to factory farms. CAFOs were able to expand their facilities over a five-year period up to $450,000. The report also shows that the 2002 Farm Bill prohibited the USDA from disclosing how EQIP recipients are using the funds.

The 2008 Farm Bill lowered the amount facilities can receive from $450,000 to $300,000 over the life of the Farm Bill. Before the year ends, the USDA will most likely engage in a rulemaking procedure, including a public comment period.