Farm bill grants huge subsidies on top of record profits

Legislation providing $290 billion in federal subsidies for farmers over the next five years has cleared both the Senate and the House of Representatives, aided by the efforts of House Speaker Nancy Pelosi and Democrats in Congress.







nancypelosi1.5.07
Speaker of the House Nanci Pelosi
led the Democratic effort to pass
the latest farm bill.


The contrast between farmer subsidies and food stamp benefits, the latter also covered by the bill, are shocking. According to the San Francisco Chronicle, “farm couples” can make up to $2.5 million before their federal subsidies are terminated. But even if their farm subsidy is terminated, they remain eligible for price supports and counter-cyclical payments. A couple applying for food stamps, on the other hand, may only own one car and have income below $17,808.


Though Bush vetoed the bill on May 21, both House and Senate had passed it with over two-third majorities—enough to override the veto.


The bill gives huge subsidies to agribusiness and big farmers during a time of record food prices and profits. According to the Department of Agriculture, net farm income is projected to be $92.3 billion this year—51 percent above its 10-year average.


The legislation also includes a “permanent disaster” program creating incentives to plow millions of acres of prairie grassland. The plowing would destroy important wildlife habitat and release 45 to 55 tons of carbon dioxide per acre into the atmosphere.


California salmon fishermen will get a $170 million bailout, Kentucky thoroughbred racehorse owners stand to benefit from a $126 million tax write-off and the bill also forces the federal government to sell parts of Green Mountain National Forest to a Vermont ski resort. (San Francisco Chronicle, May 15)


A number of opponents, including Center for Rural Affairs in Nebraska, National Wildlife Federation and many international communities have outlined extensively these various abuses and misappropriations. (Brownfield, May 13)


Some in Congress have highlighted the $10 billion increase in funding to the food stamp program or the $100 million set aside to continue to resolve the legal cases of African-American farmers who have been historically discriminated against by the USDA in their subsidy programs.


However, these are mere pittances in comparison to the billions in agribusiness subsidies. Congress is totally beholden to corporate interests, using sops to the poor as a smokescreen to carry out what is best for the rich.


 

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