June 14, 2005
|
Sowing the Seeds of Reform It is high time for Congress and the administration to get serious about reforming these payments. In his fiscal year 2006 budget, President Bush requested a $5 billion cut in farm payments over the next ten years. Unfortunately, sharp criticism from members of Congress and farm groups resulted in a watered down version of this proposal in the budget resolution, and it may be scaled back even further before it gains the force of law. Not all hope is lost, however. In the Senate, Senators Chuck Grassley (R-Iowa), Charles Hagel (R-Neb.), Tim Johnson (D-S.D.), and Byron Dorgan (D-N.D.) introduced The Rural Preservation Act, S. 385. Much like the Administration’s plan, the bill limits total farm payments to individual farmers to $250,000 and farming couples to $500,000. It the also closes many loopholes that are used to increase individual federal crop payments. Additional Links Read President Bush’s fiscal year 2006 budget highlights for the U.S. Department of Agriculture http://www.whitehouse.gov/omb/budget/fy2006/agriculture.html King Cotton In 2003 alone, the cotton industry fleeced taxpayers of more than $2 billion, with one-fifth of subsidy recipients collected a whopping 88 percent of the total payments. Some of the biggest farms squirreled away individual payments of over $2 million. Farmers in states with the most powerful lawmakers, such as Texas, Mississippi, and California, made out like bandits, collecting 56 percent of all subsidies. Though Congress hasn’t yet stopped the flow of cotton subsidies, international pressure may topple king cotton’s longstanding reign. In March, the World Trade Organization found the U.S. cotton program illegal under international trade rules. The U.S. will have to comply within the next few months by eliminating cotton subsidies or face expensive retaliatory sanctions. International pressure or not, it’s time for Congress to step up to the plate and stop the picking of taxpayer pockets. Additional Links: Read a Congressional Research Service report on the U.S.-Brazil cotton dispute at It All Ads Up Since its creation in 1985, MAP has wasted more than $2 billion subsidizing corporate advertising campaigns overseas. The list of “needy” beneficiaries includes Welchs, Sunkist Growers, Inc, the Popcorn Board, and the Wine Institute. Little wonder the Government Accountability Office (GAO) has released at least six reports criticizing the program, and in 2004 highlighted it for reduction or elimination. Nevertheless, the House rejected an amendment to this year’s Department of Agriculture appropriations bill sponsored by Rep. Chabot (R-OH) that would have eliminated the program’s funding for one year. The President’s FY06 budget request would reduce funding for the program from $200 million to $125 million, but that’s not a deep enough cut for a program as wasteful and ridiculous as MAP. Aditional Links: To read about the GAO’s critique of MAP go to The Green Scissors Campaign, led by Friends of the Earth, Taxpayers for Common Sense and U.S. Public Interest Research Group, is dedicated to protecting taxpayers and the environment. For more information about the Green Scissors Campaign, please contact: Erich Pica, Friends of the Earth (202) 222-0739 Tell a friends about the Green Scissors Campaign. Sign up to receive The Chopping Block and other Green Scissors Campaign updates. To unsubscribe from the Chopping Block, please reply to this email with the word unsubcribe in the body of the email. |
