News Coverage
Cancun has added fuel to the growing fire over farm subsidies
Published September 18, 2003
Cancun has added fuel to the growing fire over farm subsidies. The walkout by developing nations that insist that the U.S. and Europe slash the supports they provide to agricultural producers has focused new attention on the issue domestically as well as abroad.
Developing countries aren't the only critics of U.S. programs. A growing number of lawmakers, environmental groups and economists argue that subsidies should be cut way back and the rules tightened.
Some lawmakers are already pushing for changes to be made. Sen. Charles Grassley (R-IA) wants to reduce payment limits this year. But that won't happen. There's not enough time to tackle the issue.
A congressionally mandated commission also favors adjustments. Its members, which include senior USDA economists and representatives of farm groups, support lowering the ceiling on government payments and making it tougher for beneficiaries to skirt the limitation rules.
A new report on current programs will stir up controversy. The Environmental Working Group says that the country's largest farms and agribusinesses, which represent just 10% of the national total, received almost two-thirds of farm subsidies paid out last year.
And the federal budget deficit adds yet another incentive. Lawmakers won't spare farm subsidies in their efforts to cut spending.
The question is no longer IF, but WHEN, supports will be cut.
The move will likely come in 2007 in the next big farm bill. Congress will trim supports and tighten rules to prevent abuse.