Many fear for their physical safety and safety of their family members if they are not able to repay their debts

Such trends culminated in the 1996 Farm Bill—the “Freedom to Farm” bill. This Farm Bill eliminated the structural safety nets that had long protected producers during lean years. Corporate buyers and groups such as the National Grain and Feed Association, composed of firms in the grain and feed industry, pushed the 1996 Farm Bill to completely eliminate price floors, the requirement to keep some land idle, and the grain reserves that were meant to stabilize supplies and therefore stabilize prices, while simultaneously encouraging farmers to plant as much as possible. The 1996 Farm Bill thus marked the culmination of the shift from the federal government subsidizing production and consumption to diminishing price supports and the subsidization of agribusiness itself. The dismantling of such price controls drove prices down and allowed corporate buyers to profit off heavily subsidized commodities while securing their power over producers. Specifically, deregulation left farmers increasingly vulnerable to market fluctuations caused by speculation, price volatility, and the profit-motives of corporate buyers. The shifts under the 1996 Farm Bill were deemed a failure by both farmers and legislators, and by 1997, rapidly falling farm prices resulted in direct government emergency payments to farmers, despite the fact that the legislation was designed to completely phase out farm program payments. Between 1996 and 1998, expenditures for farm programs rose dramatically, from $7.3 billion to $12.4 billion. They then soared to $21.5 billion in 1999 to over $22 billion in 2001. From 1996 to 2001, US net farm income dropped by 16.5% despite these payments. Rather than address the underlying cause of the price drop—overproduction—Congress voted to make these “emergency” payments permanent in the 2002 Farm Bill.

As outlined below, neoliberal corporate influence remains particularly salient within two domains: the first is food production, processing, distribution, and service, rolling grow tables and the second is education, research, and development.One major way corporations continue to profit and exert their influence on food production, distribution, and consumption is through commodity support programs. Once the safety nets of the New Deal farm programs were cut back during the 1980s and 1990s, and completely eliminated in the 1996 Farm Bill, farmers began to produce much more corn, soybeans, wheat, and other commodity crops. Specifically, the 1996 Farm Bill eliminated the requirement to keep some land idle, which encouraged farmers to plant far more than they had before. As a result, the higher supplies of these crops brought down their prices, which drastically hurt farmer incomes and greatly increased the profits corporate purchasers reaped from purchasing even cheaper commodities. These low prices undermined the economic viability of most crop farms in the late 1990s, and subsequently, Congress provided a series of emergency payments to farmers. Furthermore, because continued oversupply kept prices from recovering, Congress eventually made such payments permanent in the 2002 Farm Bill. The dismantling of direct payment support for farmers thus ushered in another form of federally subsidized cheap commodities for corporate buyers that still leaves farmers themselves relatively vulnerable: disaster assistance programs and other emergency aid. The 2014 Farm Bill in particular cut funding allocated to direct payments by about $19 billion over 10 years—the most drastic policy change in this Farm Bill—with much of this money going into other types of farm aid, including disaster assistance for livestock producers, subsidized loans for farmers, and, most significantly, the crop insurance program. As fundamental as direct payments and emergency payments have been for subsidizing agribusiness profits, under neoliberal political and economic restructuring, crop insurance has surpassed them as the most egregious and expensive subsidy for agribusiness.

For decades, farmers have been able to buy federally subsidized crop insurance in order to protect against crop failure or a decline in commodity prices. However, private insurance corporations and banks that administer the program, such as Wells Fargo, benefit the most from crop insurance subsidies. In 2011, these corporations received $1.3 billion for administrative expenses with $10 billion in profits over the past decade. In order to help cushion the blow from the reduction of direct payments, under the 2014 Farm Bill, $90 billion over 10 years will go toward crop insurance, which is $7 billion more than the previous farm bill. However, much of this money will go to private insurance corporations and banks instead of farmers. On the production side, the increase in government support will be directed toward the deductibles that farmers have to pay before insurance benefits begin. In other words, unlike non-farm insurance policies , crop insurance insures not only the crops, but also the expected revenue from selling those crops. Thus, Agricultural Risk Coverage and Price Loss Coverage only pays out when prices drop below a certain threshold. As of early 2015, corn crops have already reached this threshold. There exists a risk that this insurance program could cost far more than expected depending on how crop prices continue to shift: therefore, this is one of the more contentious aspects of the 2014 Farm Bill. Another contentious part is the uneven distribution of benefits. A 2014 report by the Environmental Working Group estimates that 10,000 policyholders receive over $100,000 a year in subsidies, with some receiving over $1 million, while the bottom 80% of farmers collect only $5,000 annually. In short, under the guise of cutting subsidies by repealing unpopular direct payments to farmers, the 2014 Farm Bill instead increases more costly crop insurance subsidies.The pressure for corporate profit and the history of corporate consolidation with regard to the food system, both vertical and horizontal, has driven corporations to continue to lower wages for millions of food system workers and accumulate more wealth. A 2011 national survey of over 630 food system workers conducted by the Food Chain Workers Alliance found that the median hourly wage was $9.65 per hour. More than 86% of food system workers were paid poverty wages while 23% of food system workers were paid less than the minimum wage.

Despite their significant role in every part of the food system—from production to processing to distribution and service—food system workers experience a greater degree of food insecurity than the rest of the US workforce. For example, according to the Food Chain Workers Alliance report, food system workers use SNAP at more than one and a half times the rate of the remainder of the US workforce. Additionally, as of 2014, twice as many restaurant workers were food insecure compared to the overall US population; as of 2011, in Fresno County, the country’s most productive agricultural county, 45% of farmworkers are food insecure. The situation is even worse in other parts of the country: in 2011, 63% of migrant farmworkers in Georgia were food insecure. Women and people of color disproportionately feel the economic pressure experienced by food system workers as a result of corporate consolidation. A comprehensive 2011 study of food workers and economic disparity found that people of color typically make less than whites working in the food chain. It found that half of white food workers earn $25,024 a year while workers of color earn $19,349. The study found that women of color in particular suffer the most, earning almost half of what white male workers earn. Furthermore, workers of color experience wage theft more frequently than white workers. More than 20% of all workers of color reported experiencing wage theft, while only 13.2% of all white workers reported having their wages misappropriated. Significantly, the study found that such discrepancies exist in all four sectors of the food system: production, processing, distribution, and service. Furthermore, such trends hold across the overall workforce. As of 2012, 11.8% of executive and senior level officials and managers, and 21% of all first- and mid-level officials and managers were people of color, growing rack despite people of color comprising over 25% of the US population. Agricultural workers in particular experience ongoing and widespread violations of the limited protections afforded to them by federal law. This is oftentimes the result of competing producers aiming to drive down their costs by not complying with employment laws. Between 2010 and 2013, for example, among agricultural employers, the Department of Labor found 1,901 violations of the Fair Labor Standards Act , which sets the federal minimum wage, overtime pay, child labor rules, and payroll record keeping requirements. A 2009 survey of approximately 200 farmworkers paid by “piece-rate” in Marion County, Oregon, found that workers experienced extensive violations of the state’s minimum wage law. Almost 90% of workers surveyed reported that their “piece-rate” earnings frequently amounted to less than minimum wage, averaging less than $5.30 per hour—37% below hourly minimum wage Furthermore, a 2013 survey of farmworkers in New Mexico found extremely low wages and high levels of wage theft: 67% of field workers surveyed were victim to wage theft within the year prior to the survey; 43% stated that they never received the minimum wage, and 95% said they were have never been paid for the time spent waiting each day in the field to begin working. 

The combination of employers’ exploitation of the immigration system, and workers’ low income, limited formal education, limited command of the English language, and undocumented status, greatly hinders farmworkers from seeking any retribution or recognition of their rights. For example, as of 2009, the National Agricultural Workers Survey found that 78% of all farmworkers were foreign born, with 75% born in Mexico; 42% of farmworkers surveyed were migrants, with 35% of migrants having traveled between the United States and another country, primarily Mexico. Furthermore, 44% said they couldn’t speak English “at all” and 26% said they could speak English only “a little”; and the median level of completed education was sixth grade, with a large group of farmworkers completing fourth to seventh grades. With limited legal aid, many agricultural workers fear that challenging the illegal and unfair practices of their employers will result in further abuses, jobs losses, and, ultimately, deportation. Worse yet, few attorneys are available to help poor agricultural workers, and federal legal aid programs are prohibited from representing undocumented immigrants. The exploitation of migrant agricultural workers begins long before they reach the United States, and this migration has largely been driven by US trade and foreign policy in Central and Latin America. Specifically, most agricultural workers are in the United States as part of the H-2A Temporary Agricultural Workers program, which allows US employers to bring foreign nationals to the United States to fill temporary or seasonal agricultural jobs. However, nearly all such employers rely on private recruiters to find available workers in their home countries and arrange their visas and transportation to the fields. US agricultural employers thrive and rely upon an immigration system and recruitment network that provides “cheap” labor , and, as such, this recruitment network outside US borders remains unregulated and highly exploitative. Among the most grievous of such practices, for example, is the collection of fees from workers as a prerequisite to being hired. Many growers are willfully ignorant of recruiters’ activities, despite recently revised regulations that require growers to promise that they have not received any such fees. With many potential workers striving to escape poor conditions in their respective homelands, there is much incentive for recruiters to charge “recruiting fees” for personal profit, leaving H-2A workers with a great deal of debt upon their arrival to the United States. While some have paid upwards of $11,000 for such opportunities to work, others have given the deed to their house or their car to recruiters as collateral so as to ensure “compliance” with the terms of their contract. Many farmworkers been deceived about their wages and working conditions , and, to make matters worse, many workers are tied to one employer and therefore have no choice but to work regardless of the low pay and abysmal working conditions of their employers. Ultimately, the H-2A program and US labor market creates conditions ripe for debt-peonage. Furthermore, although H-2A program regulations require employers to give job preference to qualified US workers, in practice the H-2A program ultimately puts US workers out of work given the seeming cost benefits of employing H-2A workers.