Letter: Farm Bill Will Not Solve Drought

You maybe have heard reports that there is a severe drought affecting American farmers right now. Perhaps you live in an area experiencing the drought. I have news for you: passing the trillion dollar farm bill won’t make it rain. Passing the trillion dollar farm bill won’t make the crops grow. And passing the trillion dollar farm bill will hurt taxpayers by providing overly generous handouts to farmers that are affected.

In fact, 85% of farmers already have crop insurance, which is subsidized by the government. This new farm bill would just ensure they make a profit equal to 85% of their average earnings – even if the crop isn’t produced.

And 80% of the farm bill doesn’t even have to do with farming! It pays for food stamps. How’s that going to help farmers affected by the drought?

Because of this, a coalition of conservative organizations, including Heritage Action, sent a letter to House Speaker John Boehner (R-OH) urging him not to pass the trillion dollar farm bill due to pressure from the drought:

“We write urging you to resist special interest calls to use the current drought to lock taxpayers into a trillion dollars worth of bad agriculture policy. As you accurately noted recently, passing a new Farm Bill filled with special interest entitlements is not needed to address the drought facing many of our nation’s farmers.

“The challenging, yet predictable, drought conditions across much of the country must not be misused to expand an overly-generous federal role in agriculture. Agriculture already has a more than adequate safety net in the gold-plated federal crop insurance program in which taxpayers pick up, on average, 62% of the premium costs for crop insurance. These policies allow businesses to guarantee up to 85% of their expected revenue. Crop insurance cost taxpayers more than $11 billion last year. With more than half of the country in moderate to severe drought, taxpayer costs for this generous program will easily be double, triple, or more in 2012.

“Agriculture is an inherently risky business, and as you said in your July 19th press conference, most producers already have subsidized federal crop insurance policies. Those that do not enroll in the highly subsidized program have a multitude of private sector options available for managing risk, including hedging, forwarding, diversification, contracting, and many other unsubsidized options. Taxpayers cannot afford to bail out producers who chose not to purchase subsidized crop insurance or to avail themselves of the many private sector options for managing their normal business risk. Taxpayers simply cannot afford to bear all the risks for any business sector, including agriculture.

“The Federal Agriculture Reform and Risk Management Act (FARRM) passed by the House Agriculture Committee is not needed to address the current drought conditions. In fact, nearly 80% of the bill’s $957 billion price tag is not even directed at producers, but on social welfare spending programs such as the Supplemental Nutrition Assistance Program. Regardless of whether a Farm Bill is passed, crop insurance will continue to quickly compensate producers for the bulk of their losses. The bill should have been used as an opportunity to save taxpayers billions while reducing the manipulative role of the federal government in the business decisions of a vital sector of the American economy. Instead, the Committee bill obligates nearly 60% more than the last Farm Bill, creates three new taxpayer-paid “shallow loss” programs, and does nothing to rein in, and in fact expands, taxpayer-subsidized crop insurance.

“Farm businesses are riding on several years of record farm income unlike other sectors in the economy. Net farm income is at $98 billion, nearly doubling between 2001 and 2011. Like all business cycles, farm incomes rise and fall as favorable growing years are periodically followed by poor years. Most farm businesses will not only be compensated by crop insurance for losses caused by the drought, but can also dip into savings wisely built up over years of record income. With concerns about tight commodity supplies, crop prices, especially for corn and soybeans, have risen to record highs and it is with these record prices that crop insurance losses will be calculated. In fact, some producers may see record profits when crop insurance indemnities are calculated.

“Even with the drought, America’s agricultural economy remains strong. This strength and the glaring weakness of the federal budget – $15 trillion in debt and trillion dollar deficits for the next decade – make it even more essential that Washington’s role in agricultural policy be reduced. Now is the time to roll back wasteful and market distorting taxpayer subsidies. FARRM does the exact opposite.

“Using the current drought as a pretext to bail out yet another sector of the U.S. economy while expanding the federal government’s role in the business decisions of agricultural enterprises is something taxpayers and our free-market economy cannot afford

“Again, we urge you to resist special interest calls to misuse the current drought to lock taxpayers into a trillion dollars worth of bad agriculture policy.”

You can see the letter and other signers here.

Please Share Your Thoughts

13 thoughts on “Letter: Farm Bill Will Not Solve Drought

  1. Farm Hemp! Going green at he lowest level! sell, and bill the farmers via taxes upon sale of seed and stalks (seeds, oily) (stalks, Cloth’s, and a host of other products)

  2. They are all a bunch of crooks and clowns. They are fast becoming the richest class of American. If they don’t vote for term limits, we must vote them out for new ones every chance we get for the next 30 to 40 years just to repair the damage.

  3. How much is in there for converting corn into idiotic, uneconomic ethanol for feeding our gas tanks instead of the world’s hungry mouths?

  4. Remove SNAP out of the Farm Bill and let it stand on its own as an entitlement program. This entitlement program needs real reform to insure the money is only used to purchased real food items. Snacks and carbonated beverages and soft drinks should not qualify. Just take note sometime while grocery shopping who uses food stamps and what they are purchasing.

  5. FIRST, stop paying people who cannot support themselves to have children. Most of the children will be a copy of their parents and have children who will copy their parents and be unable to support themselves. It’s into the $ trillions now and just to create more demos.

  6. For starters, according to the Constitution, the federal government is here for defense and regulating commerce between states. It’s not some sweet old uncle (Sam) that dotes on his less than productive nieces and nephews and spoils them into thinking they don’t have to do anything even remotely akin to working.

    It’s unconstitutional for the feds to oversee education (states have that duty) as well as dozens of other pies Uncle Sam is poking into. I have no problem with food stamps for those who CANNOT help themselves, but definitely not for free-loaders. It’s become a way of life for millions.

    Now, in case you’re wondering, I’m a senior who receives some food stamps as well as Medicare paid by the state. Childhood rheumatic fever damaged my heart, and the subsequent oxygen deprivation all but killed my short-term memory. My cardiac arrests (yes plural) have made it impossible for me to do anything remotely strenuous. So I have not had meaningful work in twenty years. It’s hard to go from someone with a genius IQ to a blithering idiot, trust me! I lost everything through no fault of my own, so I have empathy for those who’ve struggled and lost. But I’m very angry when I think of those who’ve chosen to sponge off the rest of us. Why shouldn’t they take care of themselves? Why do they think they’re entitled to a free ride?

    I fled my “home” as a teenager because my father was a pedophile as well as a murderer. My mother basically offered up her children to him because she was too busy enjoying her music and her soap operas to support her children and keep them from harm.

    I was in Military Intelligence in my youth but was discharged when my ex-husband and I dared to have a child. I divorced him after many years because he started drinking and abusing my children. I have no claim to his military pension, but the woman who married him shortly before his retirement does. Now women have the same rights as men–about time! But it’s too late for me and many others.

    So, for those of you who think you deserve a free ride, think again. Maybe you haven’t had it so bad after all. If you can work, even if you think the job is beneath you, WORK! You’d be surprised how good it feels to be a human instead of a sponge. Sponges just end up being dirty and worn. Do you really want that?

  7. Pingback: What Grows in a Drought? Government - OBAMA-B-GONE

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