We study N=1 supersymmetric SU(2) gauge theory in four dimensions with a large number of massless quarks. We argue that effective superpotentials as a function of local gauge-invariant chiral fields should exist for these theories. We show that although the superpotentials are singular, they nevertheless correctly describe the moduli space of vacua, are consistent under RG flow to fewer flavors upon turning on masses, and also reproduce by a tree-level calculation the higher-derivative F-terms calculated by Beasely and Witten (hep-th/0409149) using instanton methods. We note that this phenomenon can also occur in supersymmetric gauge theories in various dimensions.
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