(Kellogg, General Mills, Phillip Morris, Quaker Oats.) Those who raise beef have three meat packing companies that control 81% of the market. (Bricker, 2003).
From 1982 to 1993 the cost paid by farmers for inputs increased by 23% while the prices received for their produce only rose by 7%. In 1997-1998, it cost farmers about $2.64 to grow a bushel of corn. But they were only able to sell on average at $1.91 per bushel. They lost $0.73 on every bushel of corn they sold. In 1999, the price was down to $1.82 per bushel while costs continued to rise. (Anderson, 2001).
Seventy years ago, there were nearly seven million American farmers. Now there are about two million, even though the general U.S. population has doubled. In Wisconsin where there were 200,000 mostly small farms in 1935, there are 78,000 today. Between 1987 and 1992, America lost an average of 32,000 farms per year and most of those were family farms. In Minnesota, 5 out of 6 farmers who went out of business were small farmers. Of those who small farmers still on the land, 80% have farm income below the poverty line. (Bricker, 2003) They have had to make most of their income at non-farm related jobs.
Why is this allowed to happen to the small farmers? Globalization has fed the trend of corporate conglomerates. Although monopolies are illegal in the United States, the rise of transnational corporations (Kellogg, General Foods, and Del Monte) has led to industry and commerce with little to no government control. These corporations are then able to control much of their market interest by eliminating the competition and overcharging the small farmer for input items or by simply beating out the farmers selling price by producing in developing countries. .
When politicians talk about the great American farmer they are often referring to the giant corporate farmers (who donate to political parties). The American farm policy is in service for these corporate giants and pitted against small family farmers.