Farm Bill: Same Bill, New World
Today, the House of Representatives voted 318-106 to pass a $300 billion, 5 year Farm Bill. While the bill funds some domestic conservation and nutrition programs and food aid, it also includes agricultural subsidies that have a tangible impact on global poverty. Agricultural subsidies, which Japan and other rich countries in Europe use as well, have historically been used to help farmers earn a living when world prices for commodity crops such as wheat, corn, and rice are low and farmers lose revenue. However, these payments can also cause subsidized crops to flood overseas global markets, making it difficult for farmers in poor countries to sell agricultural products in their own markets.
Farm incomes are higher than ever, the US Department of Agriculture reports that net farm income will top $92 billion in 2008, far exceeding the 10-year average of $61 billion. These agricultural subsidies often go to the wealthiest farmers in the country. Even under the new legislation only individual farmers who make $750,000 or more in farm income would be ineligible for direct subsidy payments. The legislation that the House approved today essentially continues subsidy programs that disadvantage the poor. During this time of high food prices, when U.S. farmers are earning at record levels and poor people in developing countries are struggling to feed their families, it makes little sense for the US Congress to pass a program that can have such a damaging impact on farmers in poor countries.
Next the legislation moves to the Senate, where it is likely to pass easily as well. The White House has threatened to veto the legislation when it comes to the President, but House and Senate leaders are saying that they will vote to override a veto, which requires a 2/3 vote in both houses.
To read more on the Farm Bill see the articles below
AP article
Links to some of our partners’ work on the Farm Bill
-Sara Rogge, Senior Trade Policy Advisor
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September 23, 2008 at 8:42 am
The information provided here is false. As a Tufts University article, The Paradox of Agriculture Subsidies (available online) sums up on page 21, leading econometric studies have found that subsidy elimination would only reduce most dumping (exporting farm commodities at below cost) by less than 5%, while the Institute for Agriculture and Trade Policy found (U.S. Dumping on World Agriculture Markets: February 2004 Update, available online) that dumping has often been 20-40%, even over 60% for cotton. So subsidies don’t cause poverty and starvation, and subsidy elimination doesn’t prevent them. Farmers also know from history that price floors and supply management are the key factors, not subsidies. Lobbying for subsidy caps or green subsidies still preserves dumping. We see than that much well intentioned justice work has been inadvertently pro dumping. We must say no and stop signing on to subsidy elimination proposals that remain pro dumping, that lack Price Floors, Supply Management, Price Ceilings and Commodity Reserves. We must get the facts, sign on with the National Family Farm Coalition (nffc.org) and stop endorsing well meaning but pro dumping groups, reports and legislation. Neither Oxfam nor Bread for the World provide accurate information on the points I’ve made here.