Food Subsidies & Health: The Connection

5 Broad Food Industry Groups

1. Grain and oilseeds
2. Fruits and vegetables
3. Cattle
4. Dairy
5. Hogs, poultry, and eggs

Grain and Oilseeds

• Souped-up engine of the American agricultural economy
• Grains with greatest total value: corn, followed by Soybeans
• Grains with greatest food value: wheat, followed by rice
• *Large, very large family farms prominent in grain and oilseeds

Fruits and Vegetables

• Fruit and Nut Toppers: grapes, oranges, apples, almonds, strawberries
• Vegetable Toppers: potatoes, lettuce, tomatoes
• No clear distinction between fruits & vegetables
• Tomato?
  • Way back in the day, fruits had no import tax while vegetables do have an import tax
  • Economic ramifications; Tomato classified as a vegetable

• Centralization of food system
• Fast food industry demands uniform products encouraging centralization of every agricultural sector
• Fruits & vegetables, now grown, packaged and shipped like industrial commodities

Reasons for food safety concerns and reporting of outbreaks

• Improved reporting of outbreaks
• Aging population with weakened immune system, susceptible to food-borne illnesses
• Much produce eaten without cooking

Food safety Regulatory system

• Responsibility of local, state and federal agencies
• Quicker response to localized public health problems
• Example, states responsible for safe milk and sanitary operations of restaurants
  • New Jersey; bans sale of raw milk

Reasons why burgers are cheaper than salads

• Production costs
• Transportation and storage costs

Unhealthful foods, with the exceptions of cookies, have gotten a lot cheaper since 1978

• Sodas are 33% cheaper
• Butter is 29% cheaper
• Beer is 15% cheaper
• Fish is 2% more expensive
• Vegetables are 41% more expensive
• Fruits are 46% more expensive

Corn

• Dent corn = field corn; livestock feed
• Not necessarily unhealthy
• Simultaneously a fruit, a grain and a vegetable
• Target for food cops

Corn subsidies making us fat?

• Federal farm subsidies always make our foods cheaper, leading to over-consumption: true or false?
  • NOT ALWAYS TRUE
  • But at times, farm subsidies lowered price of US farm commodities
  • Example: grain price, if lowered will lower the price of producing breakfast cereals, or bread

Common notion: obesity can be curbed by increased consumption of fruits & vegetables

• By removing subsidies of grains, caloric consumption will be reduced; research shows an average adult weight would decline by only .35 lbs/person/year
• No compelling evidence that doing so would have much influence on obesity

FACT: Increased subsidy is given to corn for fuel more than food

Sin tax

• Gaining momentum
• Fat tax, a levy on sugary drinks and other unhealthy food products associated with obesity

Farm Subsidies

• Farm subsidies are government financial benefits paid to specific industries, like agribusiness

• Help reduce risk for farmers during bad seasons

• They have evolved to be very complex. As a result, Only large producers can take advantage of farm subsidies

• Why grains? Grains provide 80% of the world’s caloric needs. Grains can also be stored and affordably shipped.

• The top five states receiving subsidies are Texas, Nebraska, Kansas, Arkansas, and Illinois.

• Corn is the nation’s biggest crop.

• More than 15 billion bushels were grown in 2017, with 15% exported. The corn belt is Indiana, Illinois, Iowa, Missouri, Nebraska, and Kansas. A third of Iowa’s economy depends on farming.

• California produces the most food by value. Most of its almonds, wine, dairy, walnuts, and pistachios. These aren’t subsidized

• Grains are the most heavily subsidized, making them cheaper than vegetables and fruits. As a result, grains make up one-fourth of the average American diet.

• Oil made from corn, soybeans, and canola contributed another quarter. Fruits and vegetables are less than 10%

• More than 6% of farm subsidies go toward four “junk food” components: corn syrup, high-fructose corn syrup, corn starch, and soy oils.

• The problem is that subsidized commodities financed by these policies are not exactly aligned with U.S. dietary guidelines

• Current Dietary Guidelines for Americans emphasizes consumption of fruits, vegetables, whole grains, lean protein, and low-fat dairy while limiting consumption of saturated fats, sugars, salts, and refined grains.

• However, U.S. subsidies focus on financing the production of foods like corn, soybeans, wheat, rice, dairy and livestock.

People often prefer “default” options

• Scenario:
• Sandwich + fries by default; salad an option for fries
• If Sandwich + salad by default; fries an option
• A healthier choice available

Food decisions are often based more on emotion than rational thought

• Impulsive behavior
• Better lighting / attractive containers / more choice of fruits & vegetables

People have problems with self-control when choosing food

• Immediate satisfaction
• Cravings
• Preselect healthier choices - an option

External cues

• External cues can have a major effect of the food selected, the amount consumed, and an eater’s perception of how much was consumed