News Coverage
Hoosiers Split On Revised Farm Bill
Published May 13, 2008
WASHINGTON – Congress is poised to tweak but not overhaul the nation’s crop subsidy system, a decision Indiana’s senior lawmaker says is a mistake and that President Bush promised to veto.
Sen. Richard Lugar, R-Ind., opposes the legislation the House and Senate likely will adopt. The bill – a compromise version of the bills adopted last year by the House and Senate – is on the House agenda today; the Senate may vote Thursday.
Bush said Congress ought to extend the existing system one year rather than pass what he said is “irresponsible” legislation.
The vote in the Senate is expected to be large enough to override Bush’s veto, though the House vote is less certain.
“Farm income is expected to exceed the 10-year average by 50 percent this year, yet Congress’ bill asks American taxpayers to subsidize the incomes of married farmers who earn $1.5 million per year. I believe doing so at a time of record farm income is irresponsible,” Bush said.
But not all members of Bush’s party agree.
Rep. Mark Souder, R-3rd, said he will probably vote for it but wants to review the details. He was one of 19 Republicans who voted for the House version of the bill in July.
Rep. Mike Pence, R-6th, issued a statement praising provisions in the legislation, saying they “will save Indiana jobs and create new opportunities for Indiana farmers.” But he said he’s undecided on whether to vote for or against the bill. Pence voted against the House version last summer.
As the senior Republican on the Agriculture Committee, Lugar tried without success to wrench the nation’s farm policy off subsidies for some crops that are paid to landowners, not necessarily farmers.
Lugar wants the government to underwrite crop insurance so farmers who are hit with poor yields or confronted with low market prices have a financial cushion. But the five-year, $280 billion bill largely retains the subsidy system.
It would make small cuts to direct payments, which are paid to some growers no matter how much they grow. Currently, people with adjusted gross incomes of more than $2.5 million can’t collect subsidies. The legislation would lower caps to $750,000 of farm-related income or $1.5 million per married couple.
In addition, people with more than $500,000 in non-farm related income would not be able to collect any subsidies.
In 2006, more than 1.4 million landowners got $13.4 billion in crop subsidies, according to calculations by the Environmental Working Group, which supports the elimination of the subsidy system.
In a statement issued by the White House, Bush said, “crop prices have averaged a 20 percent increase since just last year. Still, Congress wants to raise payment rates for most crops and create new subsidies which can be triggered even at very high prices.”
The price of corn averaged $2.30 a bushel for the past 10 years. Last month, corn averaged $5.13 a bushel.
“The bill fails to stop the practice of collecting subsidies even when crops are sold later at a higher price,” Bush said.
Lugar previously said the subsidy system, “sold to the American public as a safety net, actually hurt the family farmer. In the name of maintaining the family farm and preserving rural communities, today’s farm programs have benefited a select few while leaving the majority of farmers without support or a safety net.”
In December, the Senate voted 58-37 to kill Lugar’s crop insurance plan.
