|
|
|
|
|
By Kenneth Dierschke
TFB President
President Bush's budget proposal contains sweeping across-the-board cuts in many federal programs. Unfortunately, agricultural programs that help many farmers and ranchers survive are also on the chopping block.
Texas farmers and ranchers lived through the dark days of the '90s. In Washington, memories dim more quickly, but recent improvements in the farm economy are far too fragile to be considered a recovery.
The farm bill in 2002 has been crucial to the survival of many farmers in our state and elsewhere. The proposed cuts are targeted at 5 percent, amounting to $8.2 billion over the next ten years.
We view the 2002 farm bill as a contract with the farmers of Am-erica. Many decisions have been made based on its provisions. For example, loans have been secured and expansion plans have been made, all depending on the financial foundation of the farm bill. Without it, the future once more becomes uncertain.
Even at present levels, U.S. farm program spending is dwarfed by that of the European Union. We should not set out on a course that leaves U.S. farmers competing alone against the government treasuries of our major agricultural competitors. No major economic power in the world fails to protect its own food production capability. This is an issue of national security.
Direct payments to farmers amount only to seven-tenths of one percent of the federal budget. Americans get a lot for that investment. The stable supply of food and fiber produced as a result—in part by the farm program—ensures that prices for food and fiber remain relatively low. Our food is safe and abundant.
The 2002 farm bill also has important environmental provisions. Under those provisions, farmers can afford to implement management practices that benefit the environment.
Finally, the current farm bill payment structure is countercyclical, meaning that payments decline when prices are better and increase when the market declines. In fact, the 2002 farm bill expenditures thus far have been $17 billion under budget.
Texas farmers understand the need for spending discipline, but these proposed cuts change the rules in the middle of the game. Any adjustments should be made when the new farm bill is written in 2007.
The contract of the 2002 farm bill has been a success for all involved. America has a stable base of agricultural production. Consumers have a steady supply of safe and affordable food and fiber. The government has a cost effective program that has accomplished its major objectives. Major cuts now can halt those first tentative steps toward recovery and boost the efforts of our competitors. U.S. farmers have done their part. We need to stay the course.
