farm subsidies
Invest in ag research, end farm subsidies and insurance, free market group says
Congress can save billions of dollars a year on the 2018 farm bill by axing crop subsidies, crop insurance and many conservation programs, says the free market American Enterprise Institute in reports issued today. Some of the money "should be re-allocated to programs that do provide U.S. households with genuine positive benefits," such as agricultural research, and the rest of the $16 billion a year "could be re-allocated to other uses, including lower tax rates," says AEI.
Cottonseed subsidy could cost $420 million or more
The Senate proposal to create a subsidy program for cottonseed could carry a pricetag of $420 million or more, according to an analysis by economist Carl Zulauf of Ohio State University. Zulauf did not calculate the figure but estimated 14.08 million acres might be eligible, with payments of $30 an acre, based on USDA payment formulas.
Lawmakers, lenders join cotton industry appeal to Trump to keep stop-gap aid program
The insurance-like cotton subsidy program of the 2014 farm law is a failure, U.S. lawmakers, lenders and cotton groups said in four coordinated letters to President Trump. They asked him to keep in operation the cotton ginning cost-share program created as a one-time, $300 million payment last year. In a show of support, letters were sent by 109 representatives, 26 senators, 82 cotton groups and 1,600 lenders and rural businesses.
Vermont’s approach to farm pollution seen as a national model
From Vermont’s Lake Champlain to rivers in California, waterways are being overloaded with nutrient pollution running off farms. But Vermont took an approach to cleaning up its waterways that could well serve as a model for other states, especially now that the federal government is in regulatory retreat in the Trump era, writes Paul Greenberg in FERN’s latest story with Eating Well magazine.
A sea of issues await Perdue when he walks in the door at USDA
Former Georgia Gov. Sonny Perdue is hours away from becoming U.S. agriculture secretary, with the Senate expected to confirm the nomination by a solid majority this evening. Perdue will enter the job on a tide of goodwill and risks inundation by a flood of issues from budget cuts and agricultural trade to expanded subsidies for cotton and dairy producers.
Small government, anti-waste groups want to slash farm program and crop insurance
A coalition of small-government, anti-tax, and anti-waste groups says the 2018 farm law should abolish many of the subsidies now available to producers and "only provide risk-related assistance for uncontrollable natural events," such as major crop losses. "Farmers — especially those with operations with a million dollars or more in sales that account for most agricultural production — are more than capable of competing in the marketplace," say the 15 groups in a letter to lawmakers.
Cotton industry renews push for $1 billion cottonseed subsidy
Rebuffed by the Obama administration, the cotton industry told a House Agriculture subcommittee that growers need a subsidy on cottonseed to offset low prices for cotton fiber. The novel proposal, with an estimated pricetag of $1 billion a year, is part of an industry push to make cotton eligible for the same subsidies offered to grain and soybean growers.
Major farm groups put crop insurance, commodity subsidies as priority
The two largest U.S. farm groups and the leading groups representing corn, soybean, wheat, barley, canola and sunflower producers are united in asking for more money for the 2018 farm bill and in naming crop insurance and commodity programs as their top priorities for funding. "There is a consensus on every issue," the groups said in a statement presented at a House Agriculture subcommittee hearing on crop subsidies.
South Dakota senator proposes farm income support via land idling
With farm income in a slump, South Dakota Sen. John Thune unveiled a short-term land-idling program to boost a farmer's income for carrying out soil and water stewardship on marginal farmland. The National Sustainable Agriculture Coalition (NSAC), a small-farm group, said the idea "is worth looking at."
Trump seeks 15-percent domestic cut to pay for big military spending
President Trump would pay for his proposed $54-billion increase in military spending in fiscal 2018 by cutting domestic discretionary programs by 15 percent, said the think tank Center on Budget and Policy Priorities. "The president's proposal would continue a severe, multi-year squeeze" on discretionary programs such as education, job training, clean water, and medical and scientific research, said the think tank.
Farm Bureau to propose revenue insurance for dairy industry
Critics say the dairy subsidy created by the 2014 farm law, called the Margin Protection Plan and based on the difference between milk prices and feed costs, is inadequate in the face of the steep decline in milk prices since 2014. An alternative approach is being developed, says Dairy Herd Management magazine – a revenue insurance policy.
Farm subsidies don’t influence food prices or help the poor, study says
Farm subsidy programs have little impact on food consumption, food security or nutrition of the poor in the United States, say three economists in a paper written for the American Enterprise Institute, which promotes the free-enterprise system. "When filtered through the food chain, their impacts on retail prices and food consumption are surely tiny," the paper said.
Corn growers say yes to revenue guarantees, no to yield protection
Given the choice, Corn Belt farmers vastly prefer revenue guarantees for their crop, whether through crop insurance or farm subsidies, over coverage that is based on yields, says economist Gary Schnitkey of the University of Illinois. The research shows why proposals to revamp the federally subsidized crop insurance program typically bog down in Congress.
Trump, a supporter of ethanol, less farm regulation
President-elect Donald Trump campaigned as a supporter of corn ethanol and said he would protect farmers from over-regulation. His senior advisor, Sam Clovis, said the New York businessman does not support the idea, popular among conservative House Republicans, of splitting food stamps from the rest of the farm bill.
USDA plans second cheese purchase to bolster milk prices
Weakening farm economy jeopardizes future of some farmers
The third year of weakening U.S. farm income will create "more questions about the ability of some producers to continue to operate after experiencing losses for multiple consecutive years," says the Kansas Federal Reserve Bank. The sour economy is causing ripple effects in farm towns in the Plains, ag bankers told the regional Fed.
As farm income slumps, debate over the future
If there was any doubt, the agricultural boom ended in red ink for relatively large-scale Illinois farmers last year — an average loss of $2,971 per farm just one year after they notched a net farm income of $107,290, say three University of Illinois economists. Low crop prices were the culprit in Illinois, and across the nation, with comparatively low farm income expected for several years to come.
EWG: U.S. needs stronger, more focused conservation program
Voluntary soil and water conservation programs "aren't leading to clean water, clean air and a healthy environment," says the Environmental Working Group in unveiling a database that tracks federal conservation spending to the county level. EWG says Congress should require farmers to perform more stewardship work in exchange for farm supports, and focus scattershot conservation programs on the practices with the greatest payoff in the areas with the greatest need.