Farm Subsidy Dependency: Which States Rely Most on Federal Payments?
Subsidies as % of Farm Income by State
| Rank | State | Subsidies | Farm Income | Dependency % |
|---|---|---|---|---|
| 1 | North Dakota | $7.7B | $11.2B | 69% |
| 2 | South Dakota | $6.8B | $11.7B | 58% |
| 3 | Montana | $3.5B | $6.4B | 55% |
| 4 | Kansas | $8.6B | $20.4B | 42% |
| 5 | Arkansas | $4.1B | $10.9B | 38% |
| 6 | Mississippi | $2.6B | $7.1B | 36% |
| 7 | Iowa | $11.7B | $33.4B | 35% |
| 8 | Minnesota | $8.2B | $24.7B | 33% |
| 9 | Nebraska | $8.0B | $26.6B | 30% |
| 10 | Oklahoma | $4.5B | $15.6B | 29% |
| 11 | Missouri | $5.7B | $22.0B | 26% |
| 12 | Illinois | $8.3B | $33.2B | 25% |
| 13 | Indiana | $4.0B | $18.3B | 22% |
| 14 | Ohio | $3.8B | $19.8B | 19% |
| 15 | Texas | $12.6B | $69.9B | 18% |
| 16 | Georgia | $3.6B | $22.8B | 16% |
| 17 | Colorado | $2.9B | $19.1B | 15% |
| 18 | Wisconsin | $3.8B | $28.9B | 13% |
| 19 | North Carolina | $2.4B | $34.0B | 7% |
| 20 | California | $6.2B | $308.8B | 2% |
What Dependency Means for Farm Policy
"Dependency" measures how much of a state's total farm income comes from federal subsidy payments rather than market sales. A high dependency ratio means farmers in that state would face dramatic income drops if subsidies were reduced or eliminated.
North Dakota's 69% dependency rate is staggering — nearly seven out of every ten dollars in farm income come from the federal government. This is driven by a combination of low commodity prices for wheat and pulse crops, extensive CRP enrollment, and multiple rounds of disaster and trade war payments.
By contrast, California's 2% dependency reflects its $308 billion farm economy dominated by high-value fruits, vegetables, nuts, and dairy — products that receive relatively little subsidy support compared to commodity crops.
The states with the highest dependency tend to grow commodity crops (wheat, corn, soybeans) in regions prone to drought and price volatility. This creates a policy feedback loop: subsidies are designed to support these exact crops and conditions, which in turn makes these states more dependent on continued support.