If the last seven years have proved anything on Capitol Hill, it is that there are no fiscal conservatives in Washington. The bipartisan desire to spend is overwhelming.
Consider the Farm Bill. It’s not obvious why farmers–and not, say writers or engineers–deserve to be subsidized by Uncle Sam. But it’s crazy to raise crop supports when prices are rising. Yet that’s what our spendthrift legislators are doing.
Editorializes the Wall Street Journal:
Since the last farm bill in 2002, the price of cotton is up 105%, soybeans 164%, corn 169% and wheat 256%. Yet when Mr. Bush proposed the genuine change of limiting farm welfare to those earning less than $200,000 a year, he was laughed out of town. The bill purports to limit subsidies to those earning a mere $750,000, but loopholes and spousal qualifications make it closer to $2.5 million. As Barack Obama likes to say, it’s time Washington worked for “the middle class,” which apparently includes millionaire corn and sugar farmers.
Another purported change is the arrival of “fiscal discipline,” in Nancy Pelosi’s favorite phrase from the 2006 campaign. Yet it turns out this farm extravaganza may bust federal budget targets even more than we thought a week ago. That’s because the new price supports — the guaranteed floor payments farmers receive for their crops — have been raised to match this year’s record prices.
The USDA reports that if crop prices fall from these highs to their norm over the next five years, farm payments will surge. For example, if corn prices return to $3.25 a bushel from today’s $6, farmers would get $10 billion a year in support payments. If bean prices fall to their norm, they’d get $4 billion. Thus, if farm prices stay high, consumers face higher grocery bills and farmers get rich. If farm prices fall, taxpayers kick in the difference and farmers still get rich.
Sugar producers also make out like Beltway bandits, receiving the difference between the world price of sugar, which is now $12 per pound, and the guaranteed price of about $21 per pound. That’s a roughly 75% subsidy for already wealthy cane growers and a nice payoff for the $3 million they contribute to House candidates each year.
It’s not clear why Congress even bothers debating legislation like this. Why not simply give the keys to the Treasury to farmers and let them cart off as much money as they can carry? Cut out the legislative middlemen!
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“For example, if corn prices return to $3.25 a bushel from today’s $6, farmers would get $10 billion a year in support payments. If bean prices fall to their norm, they’d get $4 billion. ”
And our current politicians want is to re-elect them? I wouldn’t vote for any of them, even on a bet. This farm welfare bill is sickening.
What can you expect Democrats to do? I know Republicrats are in this too, but does Nancy Baloney stand for responsible leadership? Of course not, she’s that New York import for San Fran, the city due for the “big one”. Nancy Sadam and her party are single handedly taking apart America.
Doug needs to research before writing knee jerk. Farm inputs have went up 120% since Nov. In our busines we are finding that the farmers are in the worst shape in 5 years. Most did not anticipate that Oil would cause such a input increase while contracting there crop at what they thought was a good price yet below break even. Bankers are having trouble financing while farmers are finding they have exausted there line of credit in mid season. the alternative is for America to import food, it works so well with oil.
Congress had to pass this bill to keep food on your table.
Ok, go over all of the laws that allow for loans from anyone with US Fed. Protection of anykink, and colse off all non profit organizations getting loans. They don’t pay into the Federal system of monines on hand and so should get their hands out of the cookie jar. Now once all Americians with any connections can read and pull those loop holes out of my face, we’ll talk, until then just keep banging the print out and getting your funding. I wanted a restoration loan for a 50 ac man made lake and only the local non profit or a local government qualified for the 3% loan for the restoration work. My dad built it starting at 16, severed in ww2 and then continued his public park all toll for 80 yrs, so at the age of 95 in his living room doing the deal. Died at age 97, but well you know he was just an all round American, how could he follow the details that Scenic Hudson could follow on restoration of the lake he had made. Give me a break my fellow Americans you don’t know how to cross off the mandates that are no longer following the guidleline that followed them into law, like some funding. So we’re done as a republic, because you have no guts.
Vot all incumbents OUT. They are stealing all of our money one way or another. Vote them OUT!!