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Farm Bill

Some parts of the Farm Bill are good for ordinary people.  Why do our legislators pass the bad parts of the Farm bill too?  Here are some of the bad parts.

Simpson, Craig, and Crapo should be accountable to us in the federal government. They all voted for the Farm Bill. Wood, Barrett, and Siddoway should be accountable to us in Idaho government.  They all voted for the business tax breaks that I describe here.

While I am worrying about the income, sales, and property tax that the people in Idaho must pay, the federal government passes the Farm Bill.

The Los Angeles Times, Wall Street Journal, and the New York Times have called the Farm Bill subsidies to farmers "the most undeserving welfare recipients in American history". To qualify for massive government subsidies your income needs to be less than $750,000.  Most government aid will go to the largest farmers.

This is what a Harvard economist says about the Farm Bill.

Brian M. Riedl of the Heritage Foundation does not like the Farm Bill either.

Mike Crapo voted for the Farm Bill.  Here is what he said.  He does not mention the big business farm lobby, which includes the sugar lobby.  He does not mention they ignored a solution to world hunger.

 

American Farmland Trust: The 2008 Farm Bill - Analysis of the Bill
The 2008 Farm Bill—the Food, Conservation and Energy Act of 2008—marks a historic moment in American agricultural policy. ...

 

The Enron Loophole
istockAnalyst.com - Salem,OR,USA
Currently, an attempt to eliminate the “Enron Loophole” has been attached to the massive farm bill (by Sen. Carl Levin) that was passed with a veto proof ...
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Food Is Gold, and Investors Pour Billions Into Farming
By DIANA B. HENRIQUES
Some private investors are starting to make long-term bets that the world’s need for food will greatly increase — by buying farmland, fertilizer, grain elevators and shipping equipment.

According to the Congressional Budget Office (CBO) on May 19, 2008, individual income tax rates would have to be raised by about 90 percent to finance the projected increase in spending between 2007 and 2050.

 

The Tragedy of the Farm Bill
By Mark(Mark)
The tragedy I speak of is the passage of the 2008 Farm Bill, with overwhelming support in both the House and the Senate--a $309B monstrosity that represents everything wrong with Washington. HOW FARM SUBSIDIES WORK ...
Building Peace - http://www.buildingpeace.net/

Lucille Roybal Allard Votes for Corporate Handouts as Food Prices Rise
By Christopher Balding(Christopher Balding)
Here is an analysis by a Harvard economist on the current farm bill. The Real Economic Problem Facing America I am often asked when campaigning what is the biggest economic problem facing America today. Less education? China ? ...
Chris for Congress - http://baldingforcongress.blogspot.com/

The Tragedy of the Farm Bill
By Mark(Mark)
The tragedy I speak of is the passage of the 2008 Farm Bill, with overwhelming support in both the House and the Senate--a $309B monstrosity that represents everything wrong with Washington. HOW FARM SUBSIDIES WORK ...
Building Peace - http://www.buildingpeace.net/

Wind Power
By dvbeinfmah072(dvbeinfmah072)
The new US Farm Bill does subsidize wind power generation at 2 cents per kilowatt hour of electricity produced, or $4.5 billion over 10 years. This was enough to get 3100 turbines installed in 34 states in 2007 Wind Power Study shows NB ...
Wind Power - http://wind-power2.blogspot.com/

 

 

Tentative Deal Reached in Congress on Farm Bill

 

4/14/2008In Recession, Modest Help for Most Americans, But Big ...
Environmental Working Group - Washington,DC,USA
That’s what could happen if the House version of the 2008 farm bill becomes law later this week. What’s more, $120000 will just be the first of five ...
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Farm Bill stalled by funding
Stockton Record - Stockton,CA,USA
By Hank Shaw SACRAMENTO - A new Farm Bill is crashing on the rocks of the Democratic-controlled Congress' vow of fiscal responsibility. ...
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Administration Analysis Details Impact on USDA Programs without a ...
USDA.gov (press release) - Washington,DC,USA
... analysis of impacts to current USDA programs - in the absence of enactment of a new farm bill or an extension of the 2002 farm bill past March 15, 2008. ...
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CAVING ON FARM BILL REFORM
Volume XIII No. 10 - March 6, 2008

Every time you blink around these parts, there are billions being added for the yet to be finalized 2007 farm bill.

At a time when farm revenue and crop prices are at record highs, the administration recently sent a three page letter (pdf) to farm bill negotiators agreeing to go along with $10 billion in additional spending on top of the $597 billion already in the bill.

While the administration’s letter provided 13 proposals to pay for the spending increase, this may be no more than a face saving move to mask the fact they are caving to the powerful Agriculture Committee’s opposition to real farm spending reform. Most of these proposals stand no real chance in Congress. If Congress would just cut the farm bill bloat, there would be no need to jump through budgetary hoops or look for unrelated offsets to get this legislation finished.

First, there is over $5 billion in so called “direct payments” that go to people regardless of whether they grow anything or not. Direct payments were implemented in the 1990s as a way to wean farmers from more market distorting subsidies. Instead they both remain.

And then there’s the crop insurance program. Crop insurance costs taxpayers $3.31 for each one dollar a farmer receives, according to this analysis Further, a portion of these subsidies are tied to crop value.  So higher crop prices mean bigger government handouts to insurance company agents – without them even lifting a finger. According to Iowa State Professor Bruce Babcock, there’s $7.3 billion in savings to be found there – more if we were to make other reforms to the crop insurance program.

Dollars and cents aside, there are some reforms in the administration’s proposal. The so called “beneficial interest” provision would fix the current system that allows farmers to game the marketing loan program for higher profits at the taxpayer’s expense. The proposed compromise hard cap for subsidy eligibility, $500,000 in Adjusted Gross Income, isn’t perfect, but it is a substantial improvement from the laughable current cap of $2.5 million. And elimination of the proposed sugar to ethanol program is a no brainer.  The U.S. sugar and ethanol industries don’t need more propping up or more handouts.

But this bill needs so much more reform.  The Title I commodity programs are still way too wasteful, and the crop insurance, dairy, and sugar programs need significant changes.   And there are sections in the underlying bill that should be deleted or at least re-visited.

One area ripe for the picking is the irrational exuberance for biofuels.  Recent studies concluded that the worldwide plan to chug-a-lug more biofuels could actually increase global warming.  And consumers should expect higher and higher food prices as biofuels put the squeeze on other crops, raising input costs for thousands of goods.  Adding to this, a controversial amendment made it into the final version of the farm bill that opens the door for coal to liquids (CTL) subsidies.  Replacing just 10 percent of America’s oil consumption with coal derived liquid fuels could cost taxpayers $70 billion in construction costs, and according to Standard & Poor’s, without constant, long-term taxpayer support, CTL projects “are likely to be untenable.”

It’s amazing to think that Congress and the administration are considering all this added bloat and controversy while farm revenue and crop prices are at all time highs.  While the economy and the stock market are flat lining at best, commodities futures markets seem to post daily new highs.  Now is the time to fix our antiquated farm programs, eliminate supposed temporary support programs, and even save taxpayers some money.

For more information, contact Demian Moore at (202)-546-8500 ext. 118 or demian@taxpayer.net

 

 

A storm is brewing
Grist Magazine - Seattle,WA,USA
For this reason, the Senate approved a farm bill that includes a new $5.1 billion piggy bank, called the Agricultural Disaster Assistance Trust Fund, ...
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Administration Analysis Details Impact on USDA Programs without a ...
USDA.gov (press release) - Washington,DC,USA
... analysis of impacts to current USDA programs - in the absence of enactment of a new farm bill or an extension of the 2002 farm bill past March 15, 2008. ...
See all stories on this topic

Farm bill funding stalls as USDA analyzes '49 law
Brownfield - Jefferson City,MO,USA
At the same time, the Bush administration appeared to attempt to ratchet up the pressure on Congress over the farm bill by issuing an analysis Friday of the ...
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House, Senate remain stalled on farm bill budget
The Packer - Lenexa,KS,USA
29 issued a report providing detailed analysis of what would happen in the absence of enactment of a new farm bill or an extension of the 2002 farm bill ...
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Google Blogs Alert for: "farm bill" analysis

Administration Analysis Details Impact on USDA Programs without a ...
At the request of senior House and Senate agriculture committee staff, the US Department of Agriculture today provided a detailed...
Agriculture Observatory - http://www.agobservatory.org

Ag Secretary at Classic
By Cindy
USDA released a document (Word doc) "developed from Administration analysis of impacts to current USDA programs - in the absence of enactment of a new farm bill or an extension of the 2002 farm bill past March 15, 2008." ...
Corn Commentary - http://corncommentary.com

Secretary Ed Schafer's Commodity Classic Speech
By Chuck
Schafer talked about the farm bill of course and from the sound of it we're getting closer to an agreement but I know we keep hearing that and so far we don't have one. I didn't hear anything new that we haven't heard before but you are ...
AgWired - http://agwired.com

Google Web Alert for: "farm bill" analysis

Analysis of Rural Development in the House Farm Bill | Center for ...
on Rural Community Colleges Chews Wise on Farm Bill Analysis The Rural Blog on EWG Database Statement Chesapeake Bay Foundation on Influencing the Farm Bill ...

 

 

Taxpayer Letter to the President and Congressional Leadership: Veto an Unreformed Farm Bill

Democrats, Republicans spar over FISA update
CNN - USA
WASHINGTON (CNN) -- Even with Congress out of town for a weeklong break, Democrats and Republicans traded verbal volleys over the fate of an update to the ...
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Studies Show Farm Bill Loopholes Still Favor the Wealthy
By Dien Judge
Owens said the Center for Rural Affairs is disappointed with the "false reforms" in the two versions of the Farm Bill and said that Grassley's analysis is further proof that nothing has really changed. "Grassley's analysis shows that in ...
- http://www.iowaindependent.com

 

OPINION

Fairness on the Farm

(NYT)

The dollar amounts are too large and the fairness issues too stark for Congressional leaders to stick with a broken system of farm subsidies.

CFRA: New proposal 'useless'

  • Payment limitation reform, as proposed in the Senate version of the Farm Bill, would do little in reforming the system, according to a new report released last week by the Center for Rural Affairs in Lyons.

352 Editorials Call For Farm Bill Reform

  • CONTACT: Don Carr, EWG Public Affairs (202) 667-6982
  • FOR IMMEDIATE RELEASE: February 11, 2008
  • WASHINGTON – February 11th, 2008. The Environmental Working Group released today an interactive map tracking the more than 350 pro-reform Farm Bill editorials published in the past year from across America. The map highlights how the 2007/2008 Farm Bill debate has brought unprecedented attention to—and criticism of—America’s wasteful, outdated system of farm subsidies. A system that benefits a handful of plantation scale operations while most ranchers and farmers receive no aid.

 

Farm bill would allow continued subsidies for millionaires — Grassley

  • The House and Senate farm bills would allow millionaire landowners to continue to cash big government subsidy checks despite language in the proposals intended to cut off crop subsidies for the wealthy, according to a new analysis of tax data by GOP Senate aides.

Statement on the President's Budget

  • As our nation's leaders debate ways to stimulate the economy and address the challenges posed by rising costs for food, energy, and housing, the proposals announced in the President's budget seek to erode the nation's commitment to addressing the needs of the 35.5 million Americans struggling against hunger. The President's budget reduces or eliminates many programs that help the poorest among us and misses opportunities to shore up the safety net they need. More detail is here.

Ag Observatory on Farm Bill of 2007

  • Farm Bill could Hamstring State Food Safety

  • Over 40 groups, including IATP, oppose a Farm Bill provision that would wipe out state and local authority to protect food safety, the environment, and humane animal treatment

The Senate Farm Bill: A Missed Opportunity November 5, 2007

  • With crop prices soaring, farm incomes setting records, and Congress pledging to reduce the budget deficit, now is an opportune time to reform the bloated and outmoded farm subsidy programs. The Senate farm bill fails to seize this opportunity. It would continue to spend $25 billion annually on many farmers who do not need subsidies. Senators Lugar, Lautenberg, and Sessions have offered blueprints for reform. For the sake of taxpayers, consumers, and small farmers, other reform-minded senators should follow their lead and work to modernize America's farm programs.

Scrap the Senate Farm Bill and Start Over December 13, 2007

  • Record farm incomes provide a welcome opportunity to reform the antiquated, Depression-era system of expensive farm subsidies. Regrettably, the Senate farm bill (H.R. 2419) fails to modernize these programs. If the bill is enacted, Americans will continue paying $25 billion in taxes and another $12 billion in higher food prices annually for a program that distributes most of its benefits to millionaires. Additionally, these subsidies would continue to damage the environment (by promoting overproduction), undermine trade (thereby raising consumer prices and restricting U.S. exports), and promote poor diets (by subsidizing the sources of sugars and fats rather than healthier fruits and vegetables).

Farm Bill: House Committee on Agriculture

  • Read it here, if you want.