Thursday, May 28, 2015

Crop Subsidies Keep Cotton Growing in Arizona


 Cotton fields around Phoenix

ProPublica has a fascinating piece on how federal crop insurance and direct payments keep cotton farmers working in Arizona, at least for now (h/t: the Cattle Baron) : 
Growing cotton in the desert, long term, may be doomed. In Arizona, the price for cotton has been in decline, and with it the overall planting of the crop. But when the price spikes, as it did dramatically in 2010, the growers get busy. One thing has yet to change: the government’s willingness to back and protect those still wanting to be cotton farmers.
For years, the federal support came through subsidies and price protection cash put directly in the farmer’s pocket. In Arizona, those payments could total tens of millions of dollars a year. Today, the government’s aid comes chiefly in the form of insurance subsidies — reliable and robust protections against losses that many farmers and their lobbyists hoped would be every bit as effective as cold cash. And so every year more than 100,000 acres of cotton still get planted, making the crop the second-most popular in the state.
Thus, at a time when farmers in Arizona, California and other Western states might otherwise adapt to a water-short world, federal farm subsidies are helping preserve a system in which the thirstiest crops are grown in some of the driest places.
“The subsidies are distorting water usage throughout the West and providing an incentive to use more water than would be used in an open market,” said Bruce Babbitt, Arizona’s former governor and a former U.S. Secretary of the Interior.
The western water issues fascinate me.  Living and raising crops in the desert just blow my mind.

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