Subsidies prop up cotton country through downturn

Rick Faulkner directs workers Nov. 11, 2009, at the edge of one of his cotton fields in New Madrid, Mo. Faulker says farmers spend most of what they make helping local economies.

? The white puff of cotton blooms cover Missouri’s Bootheel at harvest, filling both tiny planter boxes outside a Super 8 motel’s front door and nearby thousand-acre spreads. “Thank goodness they’re able to do it,” a radio deejay reminds listeners as farmers take their crop to the gin.

They can, thanks to millions in federal farm subsidies — payments critics say merely funnel money from taxpayers to already wealthy growers. But farmers and agricultural economists argue the subsides have cushioned cotton country — even in the Mississippi Delta, where poverty is a constant — against the ravages of the recession.

“Those programs provided that stability out here that other parts of the country might not have experienced,” said Darren Hudson, an economist and director of the Cotton Economics Research Institute at Texas Tech University. “That stability provided by the programs helped buffer the region, helped buffer agriculture, which helped soften the blow to the overall region.”

The Associated Press Economic Stress Index, a monthly analysis of the economic state of more than 3,100 U.S. counties, indicates that they’re right. The Stress Index calculates a score from 1 to 100 based on a county’s unemployment, foreclosure and bankruptcy rates. The higher the number, the greater the county’s level of economic stress.

The top 50 cotton-growing counties, which are among the country’s poorest, have endured economic stress that’s essentially the same as the country as a whole. The national average county Stress Index score in November 2009 was 10.2, up from 5.2 in October 2007, when AP began tracking economic data for the index. In the 50 big cotton counties, the average stress score increased a smaller amount, from 5.9 to 10 in November.

Missouri’s Bootheel includes four of the top 50 cotton-growing counties. They’re all poor — with a per capita income that’s at least 30 percent lower than the U.S. average, according to the U.S. Census Bureau — and heavily dependent on agriculture.

But New Madrid County, for example, where the average worker makes just over $14,000 a year, had a Stress Index of 9.9 last November, below the national average of 10.2. Stoddard County, where per capita income is more than $19,000 a year, had a Stress Index score of 10.2 in November.

Neither came close to the Missouri counties hit hardest by the recession. Washington County in east-central Missouri had a score of 15.5 and Miller County in the dead center of the state had a score of 14.1.

Far to the south, counties in the rich Delta farm land of western Mississippi also showed resilience. The state’s top cotton producer, Bolivar County, had a score of 10.4 in November, compared to 19.25 for central Mississippi’s Clay County, which is far from the cotton fields.

Missouri’s Bootheel cotton counties received about $70 million in farm subsidies in 2008, most of it for cotton. Without that money, farmers and agricultural economists say there wouldn’t be much cotton grown — and no one feeding cotton to gins or buying six-figure cotton pickers from farm equipment dealers.

Rick Faulkner, a 58-year-old farmer who grows cotton, soybeans and corn just north of New Madrid, not far from the Mississippi River, received just under $900,000 in federal subsidies between 1995 and 2006, according to a database maintained by the Environmental Working Group, a Washington, D.C. group that has long fought against subsidies. 2006 is the most recent year for which payments to individual farms are available.

“And if we make the money, we’re gonna’ spend it,” Faulkner said, sitting in a lawn chair in his farm shop in early November, on the first day of a late harvest delayed by rain. “We’re not gonna’ hoard it up and save it — we just don’t do that.”

Charles Parker, who farms on 3,600 acres just outside Kennett in Dunklin County, is one of the Bootheel’s bigger growers. His farm was paid just short of $5 million in subsidies between 1995 and 2006, according to the Environmental Working Group. The 67-year-old Parker said that money creates jobs: five full-time employees, plus a couple of part-timers.