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July 2009 Volume 15 Number 3Welfare, Farm Income
The number of Americans receiving cash welfare assistance rose in 2009 for the first time since welfare reform was enacted in 1996. Among the 30 largest states that have almost 90 percent of US residents, 23 had more residents on welfare in March 2009 than March 2008, including California, where the number of cases rose 10 percent. << back There were about five million welfare cases, typically a mother with two children, in 1995. The number of cases dropped to 1.6 million in September 2008, and has since begun to rise. However, Food Stamp rolls are rising much faster then welfare rolls— they were up 19 percent between March 2008 and March 2009. There have been calls to relax the work requirements required to receive cash assistance. In 2008, candidate Obama said: "One of the things that I am absolutely convinced of is that we have to have work as a centerpiece of any social policy." Farm Income. The prices farmers received for commodities spiked in summer 2008, fell sharply, and have risen again— although not to spring 2008 levels. Corn prices peaked at $5 a bushel in July 2008, when soybeans reached $12 a bushel, up 40 percent over 2007 prices. Livestock producers suffered from higher feed costs, and some sent more animals to slaughter, maintaining employment in meat processing, the largest manufacturing industry in rural America. Real net farm income was about $87 billion in 2008, about the same as the $89 billion in 2007. The value of farm land, which accounts for 85 percent of farm assets, rose at double-digit rates. Rural or nonmetro areas somewhat insulated from the housing-led boom and recession because housing prices did not rise as fast or fall as far. There were far fewer subprime housing loans extended in rural areas— a third of all US housing loans extended in 2006 were to subprime borrowers. |