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ABOUT KEN

Ken Cook is president of Environmental Working Group, a public interest research and advocacy organization known for its Farm Subsidy Database. The author of dozens of articles, opinion pieces and reports on agricultural, public health and environmental topics, "[Cook's] fingerprints can be found on nearly two decades of U.S. farm law" (Omaha World Herald). Read more about the authors.

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November 2007 Archives

November 30, 2007

Hand To Mouth

The politics of providing nutrition assistance to low-income people, at home and abroad, have come into sharp focus this year. Rising food prices are straining domestic food aid budgets, even as demand for assistance surges because of higher unemployment. Programs that provide assistance in the form of food (versus cash) are coming up short. Prices have rationed away the "surplus" food and charity itself, for practical purposes.

The debate simmers on over reform of America's international food aid. Ought we shift some or all of it to cash, instead of delivering surplus commodities, expensively, on US merchant ships? Efficacy, efficiency--and morality--would seem to demand reform. But what good is reform if assistance declines, or disappears altogether, once it no longer satisfies the needs of America's farm and maritime interests? The political pragmatism that long gave that argument its heft has acquired the patina of cynicism these past 18 months, as more and more aid groups and professionals, and governments, have come down on the side of buying more local food from local farmers in recipient countries.

This week brought two fresh examples of the political struggle over food and nutrition assistance. My friends at the Center on Budget and Policy Priorities--the most authoritative voice in the country on federal nutrition assistance policy--issued a report describing how budget pressures, colliding with rising food prices, may squeeze hundreds of thousands of low-income women and their babies out of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). This program. . .

. . .provides nutritious foods, counseling on healthy eating, and health care referrals to low-income pregnant and postpartum women, infants, and children under age five who are at nutritional risk.

WIC is not an entitlement program. With an entitlement, however many qualified people come forth to participate, usually that's how many will receive the relevant benefits, no matter the government cost (Food Stamps and federal crop and dairy subsidy programs are entitlements). With WIC, congress appropriates a fixed amount of money, and if more people apply, or the cost of the benefits increases--or both--then more people who qualify for help are turned away.

CBPP's Neuberger and Greenstein explain:

For two years in a row [FY 2006 & 2007] the per-participant cost of WIC foods had actually declined. Since the budget was developed, however, dairy prices have soared, and they are expected to remain elevated in fiscal year 2008. Milk and cheese account for about 40 percent of WIC food expenditures. Prices have also risen to high levels for juice and eggs, which account for another 25 percent of WIC food costs. As a result of higher food prices, it will cost significantly more than the Administration had anticipated to serve each WIC participant in fiscal year 2008.

Based on current food prices (and the latest estimates of food prices for the rest of fiscal year 2008), the funding level provided in the President’s budget would serve an average monthly caseload of only 7.97 million participants, significantly fewer than the Administration intended. Moreover, participation has risen somewhat in recent months as WIC food prices have spiked, making it more difficult for low-income families to afford these foods without assistance, and as unemployment has started to climb. The program served 8.48 million participants in the final quarter of fiscal year 2007, the most recent period for which data are available. Thus, the number of women, infants, and children that the program serves is 510,000 above the number who could be served under the funding level in the President’s budget.

The problem is there isn't enough money in either the House or Senate versions of the agriculture appropriations bill that provides funding for WIC for the 2008 fiscal year. On top of that, President Bush has threatened to veto the bill as too costly. If, as is being discussed, congress and the president "split the difference" on domestic discretionary spending by cutting $11 billion, the CBPP reasons the result will be even worse:

. . . WIC would be funded at a level between $5.496 billion (if the difference were split with the House bill) and $5.554 billion (if the difference were split with the Senate bill). These funding levels would require the WIC caseload to be cut by 295,000 women, infants, and children from its current level (if the difference were split with the Senate bill) and by 405,000 participants below the current level (if the difference were split with the House bill).

Another food cost/budget squeeze is hitting food banks nationwide. From the front page of this morning's New York Times:

Food banks around the country are reporting critical shortages that have forced them to ration supplies, distribute staples usually reserved for disaster relief and in some instances close. . .

. . .The food bank in Manchester [New Hampshire] delivers provisions to a housing project each week, and on a recent Monday, Matthew Whooley, 26, of Manchester, was waiting in line with his wife, Penny, and their four children.

“Every week there’s less and less food,” Mr. Whooley said. “It used to be potatoes, meat and bread, and last week we got Doritos and flour. The food is getting shorter, and the lines keep getting longer.”

In part, food banks are suffering because farmers are doing well. The food banks rely on supplies from the federal Agriculture Department’s Bonus Commodity Program, which buys surplus crops like apples and potatoes from farmers.

“Right now, the agricultural economy is very strong and the surpluses aren’t available for us to purchase,” said Jean Daniel, a department spokeswoman. “Certainly we’re empathetic, but unfortunately we cannot count on those bonus commodities every year.”

Supplies from the surplus program dropped to $67 million worth last year, from $154.3 million in 2005 and $233 million in 2004. Figures for this year are not available, Ms. Daniel said.

Food bank operators are lobbying for passage of a farm bill currently stalled in the Senate that would raise emergency aid for food banks to $250 million a year, from $140 million. That figure has remained steady since 2002.

Susannah Morgan, executive director of the Food Bank of Alaska said, “The biggest problem is that the federal government’s programs are dropping as need is growing.”

To these examples we can add the nutritional dysfunction of the school lunch program, which would cost billions to fix if we determined to serve the same numbers of kids healthier meals. Then there's the struggle to improve the meager benefits provided to low-income families under the Food Stamp program, which now serves 26 million people per month, half of them children. (About one child in every five in America is a food stamp beneficiary.)

What connects these problems is the demoralizing lack of political will to do the right things in food and nutrition policy, and to spend the money needed to do them. It's a lot more than we're spending now. Mark Winne said it well, and provocatively, in an op-ed right before Thanksgiving in the Washington Post.

The good souls who staff America's tens of thousands of emergency food sites will renew their pleas to donors fatigued by their burst of holiday philanthropy. Food stamp workers will return to their desks and try to convince mothers that they can feed their families on the $3 per person per day that the government allots them. The cycle of need -- always present, rarely sated, never resolved -- will continue.

Unless we rethink our devotion to food donation.

America's far-flung network of emergency food programs -- from Second Harvest to tens of thousands of neighborhood food pantries -- constitutes one of the largest charitable institutions in the nation. Its vast base of volunteers and donors and its ever-expanding distribution infrastructure have made it a powerful force in shaping popular perceptions of domestic hunger and other forms of need. But in the end, one of its most lasting effects has been to sidetrack efforts to eradicate hunger and its root cause, poverty.

As sociologist Janet Poppendieck made clear in her book "Sweet Charity," there is something in the food-banking culture and its relationship with donors that dampens the desire to empower the poor and take a more muscular, public stand against hunger.

As the dilemma of the WIC program and the crisis in the food banks illustrated this week, we need to rethink even more than our devotion to food donation. We need to rethink, and reinvigorate, our devotion to food, nutrition and anti-poverty policy as a whole.

It won't be easy, and it won't be cheap.


November 29, 2007

New EWG Ag Policy Feed

There's a lot going on here at EWG headquarters. Since you're such a loyal reader, you've already subscribed to the Mulch feed (haven't you?), but now we've got another way for you to stay up-to-date on EWG's agriculture and conservation work. Friends, meet the Ag Policy Feed.

Here's how it works: You sign up to receive the feed, either in your reader of choice, or by email. We send you updates from our farm and conservation programs: research, communications, news releases, and news clips related to agriculture and the environment. You read the content at your leisure, and voilà: you are informed.

Of course, there's more to EWG than just agriculture policy. We also work on environmental health and natural resources issues, and you can get feeds for those too. In fact, we've got seven different feeds for you to choose from.

Not quite sure what all this "feed" business is about? It's a really easy way to get information from your favorite websites delivered right to you. Here's a good explanation for beginners.

Farm Bill
Senators Running for White House
Want Tighter Subsidy Caps

So it's imperative that they be in Washington, and not on the campaign trail, when the Senate votes on Dorgan-Grassley and other subsidy reforms.

Chuck Abbott at Reuters reports (sorry, I can't find it on the Web):

The five senators running for president agree on one reform for the U.S. farm program -- a "hard" cap of $250,000 per farm per year on crop subsidies, a sharp drop from the current $360,000 limit. Proponents say they expect to win a vote on the $250,000 limit, which could come as early as next week. It was the first amendment filed when the five-year farm bill was brought to the floor in early November. In campaign statements and Senate records, the five White House hopefuls -- four Democrats and one Republican -- support the $250,000 limit. The proposal also would close loopholes that allow large operators to evade the current limit of $360,000, set in 2002. Three of the candidates are sponsors of the "hard" cap, Democrat Chris Dodd of Connecticut, Democrat Barack Obama of Illinois and Republican John McCain of Arizona. Democrats Joe Biden of Delaware and Hillary Clinton of New York also support the limit. The issue could be decided in the last few weeks before the Jan. 3 caucuses in Iowa, the No. 1 corn and soybean state. The neighbor gatherings are the first of the state-by-state contests to determine the Republican and Democratic nominees for the Nov. 4 presidential election.

November 28, 2007

Farmsubsidy.org
Must Read. Oh Hell, Must View.

Jack Thurston, our colleague at www.farmsubsidy.org, has confronted the ugly face of U.S. cotton subsidies, right in the heart of London. And he's not taking it lightly.

Or sensually.*

Cottonmaid.png

*No cotton-harvest-with-bushel-basket maidens were harmed in the making of this ad.

November 27, 2007

Energy Bill
As Ethanol Use Grows
So Will Pressure For Better Fuel Economy

It's well known that a gallon of gas with ethanol won't take your car or truck as far down the road as a gallon of regular gas, even if it does so with lower greenhouse gas emissions. The real question is how consumers will react--even in Iowa--if Congress (or states) rush ahead with plans to put much, much more ethanol in our tanks, much sooner, at the same time we're all desperate to get more miles per gallon.

E85, flex-fuel vehicles continue to be pushed by Ford and other companies, in a bid to make the type of fuel, instead of fuel economy, the consumer culture's indicator of greenness. Take a gander at this fine example of a green, flex-fuel Ford vehicle. Why, it's all about the E85, in a truck design cued off a locomotive.

"The F-250 Super Chief’s bold, American design, first-class comfort and exceptional traveling range were inspired by the Atchison, Topeka and Santa Fe Railway’s Super Chief locomotive."

The corn lobby is delighted with this approach, naturally. House Ag Committee Chairman Collin Peterson underscored again yesterday what we've known all year: the energy bill with a gigantic increase in the renewable fuel standard (read "boatloads more corn ethanol") is more important to much of the crop subsidy lobby right now than the farm bill.

If consumers reject this proposition on pocketbook grounds, however, the bait and switch will quickly acquire the appeal of. . . leftover bait.

This chart from the EPA's web site, fueleconomy.gov, presents some eye-popping reductions in fuel economy for the handful of "flex fuel" E85 vehicles now on the road in America if they in fact fill up with 85 percent ethanol. (Flex-fuel vehicles have engines capable of running on either regular gas or up to 85 percent ethanol, or E85. Most vehicles of recent vintage can only use the standard mix of 90 percent gasoline/10 percent ethanol.)

It looks to be about a 25-30 percent MPG reduction for most vehicles, and that's an additional drop from the newly lowered, somewhat more realistic MPG estimates that EPA required on new cars and trucks starting with the 2008 model year now in showrooms. So we're talking lousy fuel economy with full E85 ethanol in American vehicles now on the market.

2000_Chrysler_Town_and_Country.jpgFor instance, a Chrysler Town and Country minivan, 2WD with 6 cyl automatic, running on gasoline, will average 18 MPG (highway/city combined ) but only 13 MPG on E85. Assuming $3.01/gal for regular and $2.63/gal for E85, EPA says a 25-mile trip in the Town and Country would cost $4.18 on gas and $5.06 on E85. Annual cost, even at the much lower per gallon price for E85: $2,510 for gas, $3,034 for E85, a $524 difference (maybe a couple of monthly payments).

For the Ford Explorer (2WD, 6 cyl, auto), the combined MPG drops from 15 to 11 MPG with a switch from gas to E85. In a Taurus Wagon, it plunges to 14 from 20.

Typical drivers would probably choose to buy regular gas from time to time, especially since E85 isn't widely available (though state and federal subsidies are also being sought for retail infrastructure). So the MPG gaps would not be that great. But then, neither would the greenhouse gas reductions.

And greenhouse gas reductions are the good news with E85. Even with the lower MPG, the greenhouse gas emissions for that Town and Country would be in the range of 8.5 tons per year with E85, vs. 10.2 tons with gasoline, a 17 percent reduction. (EPA calls these "full fuel-cycle estimates"of greenhouse gas emissions, which "consider all steps in the use of a fuel, from production and refining to distribution and final use. This gives a more complete picture of how using a particular fuel contributes to climate change.")

Most consumers probably want greenhouse gas reductions. But they definitely want more miles per gallon, and therefore less of their money left at the gas station. Even if we do start calling it the "fueling station."

On the other hand, one could see the E85 push as another step in Detroit's brilliant "buy foreign" campaign. Now in full swing, its apparent goal is to get Americans into smaller, better made, more fuel-efficient foreign cars, while closing costly domestic auto plants and laying off expensive U.S. autoworkers.

I guess for U.S. automakers, almost anything beats a headlong rush towards great cars that get great mileage. And sell.


November 26, 2007

Farm Bill
Still a Chance for Bigger, Smarter
Nutrition Investments?

Renegade School Lunch Lady, Chef Ann Cooper, who runs the school lunch program for Berkeley's public schools, is the lede in Sunday's farm bill story by Nicole Gaouette in the LA Times:

When Ann Cooper took over the lunch program for Berkeley schools, she found children eating chicken nuggets and Tater Tots. (”Pre-flash fried with corn fillers and corn coating,” she tut-tutted.) There was also canned fruit cocktail and chocolate milk. (”Both with high-fructose corn syrup.”)
Lunches averaged 800 to 900 calories — much higher than federal guidelines — and were loaded with salt. “That is just crazy in a world of obesity,” Cooper said.

The question is, will we be able to muster enough momentum over the next few months to improve the nutrition title and expand funding. Gaouette quotes my sentiment on the current stall-out in the Senate.
"Farm bills always favor the status quo when they’re rushed,” said Ken Cook, president of the Environmental Working Group. “This gives us some time to educate people.”

The good news and the bad in the Senate agriculture committee's pending nutrition title of the farm bill are summarized here by Dottie Rosenbaum and Stacy Dean of the Center on Budget and Policy Priorities. The good news, in a nutshell:
Including improvements added to the bill by a manager’s amendment after the bill passed out of Committee, the nutrition provisions of the bill include about $4.3 billion over five years in improvements for the Food Stamp Program and the Emergency Food Assistance Program (TEFAP), $1.1 billion for an expanded program under the School Lunch Program to provide free fresh fruits and vegetables in schools, as well as various provisions that reauthorize and improve the Food Stamp Program and various commodity distribution and other nutrition programs.

Here's the main worry:
Under the Senate Agriculture Committee bill, all of the food stamp improvements listed below, with one small exception that is noted, would expire after five years. This unprecedented approach to food stamp legislation appears to result from the bill not including sufficient budgetary offsets to make these improvements permanent. Unless Congress later took action to extend the proposed policies, more than 10 million recipients would experience benefit cuts and over 100,000 low-income people would be cut off food stamps in 2013.

Several amendments likely to be offered to tighten rules for crop subsidies (like Dorgan Grassley) or reduce crop insurance company profits (Brown-Sununu) would devote some of the savings to nutrition programs. But we'll have to dig deep to win those amendments, and dig even deeper to dramatically improve and boost funding for the nutrition title in this farm bill and in budget battles in the years to come.

November 25, 2007

Farm Bill
Washington Post Makes Case
For Payment Limits

Today's editorial makes a point we've made here before: those of us advocating for caps on subsidy payments and tighter means testing for subsidy recipients need to remember just how nutty the "limits" being discussed sound to ordinary people.
Or as the Post puts it this morning in reference to the pending Dorgan-Grassley payment limit amendment and Amy Klobuchar's proposal for an adjusted gross income lid:

Note that even if both of these amendments pass, a farm family making $749,999 a year could still receive a $249,999 handout from the taxpayers. For a Democratic Congress eager to restore a modicum of balance to the distribution of income in America, this should be a very easy call.

Full editorial in the jump.

Continue reading this post below the fold »

November 21, 2007

Farm Bill
Dan Rather Reports on Farm Subsidies

Totally starring John Phipps, Illinois farmer and iMac initiate. Vista? John, you'll never look back, dude.

Here's a temporary link to the piece. Rather was thoroughly up to speed on farm bill details, subsidies and politics when he interviewed me. And as luck would have it, the logistics of the interview made it possible for me to get him together again with Bonnie Raitt, who happened to be in town working with EWG and lots of other enviros (plus Jackson Browne, Graham Nash, Harvey Wasserman, David Fenton, Mary Olsen and others) to kill the nuclear loan guarantee provisions in the energy bill.

Rather had interviewed Bonnie back in February, 1999 for 60 Minutes II.

Farm Bill
Payment Limits Over the Pond

The merry band of subsidy disclosers at farmsubsidy.org (known on stage as Jack Thurston and The Transparencies) have been embarrassing the EU subsidy lobby since launch a few years back. And now the disclosure of who gets what in the Common Agriculture Policy has plopped the payment limit issue squarely on the table.

Here, courtesy of the indefatigable Keith Good's FarmPolicy feed this morning (do subscribe via this email farmpolicy-on@list.farmpolicy.com), is a Q & A that accompanied EU Agriculture Commissioner Mariann Fischer Boel's press conference yesterday, in which she enumerated some of the policy ideas likely to be debated in Europe during the "Health Check" of the Common Agriculture Policy now formally underway.

Big European farms should begin thinking about making it on their own. From the Commission's document:

Why are we proposing upper limits for payments?

Calls for transparency on recipients of CAP payments are linked to the apparent imbalance which still exists in the distribution of direct support per beneficiary. The shift towards decoupled support makes this distribution more evident and puts pressure on the justification of payments – are they destined to the appropriate recipients? In this context the capping of payments, an old idea which was dropped in the past, has resurfaced.

Will capping alter the uneven distribution of payments?
In the EU-27, about 20% of beneficiaries receive around 80% of direct payments. This distribution is linked to farm size distribution in each Member State, farming intensity and which farming sectors formerly received production linked direct payments. Exactly for these reasons, only at low thresholds would capping change the distribution of payments per beneficiary. At such a low level, however, the measure also has a significant income impact on many beneficiaries.

As is the case here, the limits proposed will hit only the very largest subsidy recipients. Mr. Thurston observes:

Analysis of the Commission's proposals for limiting the subsidies paid to Europe's very largest farms shows that 23,500 farms would be affected, though most of them only at the 10 per cent reduction rate.

The payment limitations proposal published today would involve three bands:

1. Payments between €100,000 and €200,000 would be subject to a 10 per cent reduction. This would affect 17,460 farms.

2. Payments between €200,000 and €300,000 would be subject to a 25 per cent reduction. This would affect 3,070 farms

3. Payments above €300,000 would be subject to a 45 per cent reduction. This would affect 2,790 farms.

Taken together, these payment limitations would affect 23,500 recipients of farm payments (around 0.3 per cent all farms). The amount of subsidy cut would be €554 million (around 1.7 per cent of the budget for direct payments).

By contrast, the failed Franz Fischler proposal of a hard ceiling of €300,000 would have affected 2,795 recipients and would have cut payments by €750 million (2.3 per cent of the total amount spent on direct payments to farmers).

This development only strengthens the hand of reformers over here who are pursuing Dorgan-Grassley's payment limit and sensible subsidy cut-off's for the wealthy (the adjusted gross income approach). We can point to the lively debate now officially engaged in Europe as evidence that the subsidy lobbies in both countries have perpetuated inequities that the public, once aware, will no longer tolerate.

Transparency in subsidy payments has helped make a transatlantic case for sensible limits on who should receive them.

If you want to stay tuned to the CAP review with guidance from reform-minded NGO experts, academics and others, here's the spot.

November 16, 2007

Farm Bill
Cloture And The House of Cards

Suppose for a moment Sen. Reid fails to get the 60 votes needed to cut off debate on the farm bill later this morning. (I've already supposed as much to Steve Hedges.) It means he takes down the bill, or debates mischievous amendments to it for weeks. Which might as well be forever given all the other things on his plate. [UPDATE: Cloture did fail. If a compressed farm bill debate, with limited amendments that will take no more than a few days, can't be agreed by both sides, forget a December result. The Senate will pick up the bill again in February, a reprise of the 2001/2002 farm bill cycle, and we won't see a completed bill until March, if not later.]

What does that mean? More negotiations about how to debate the farm bill and come back to it in December--or February? Sure.

Or maybe with time running out and no agreement in sight, a one- or two-year extension bill is proposed in the Senate? Yesterday Chairman Harkin speculated that might be the outcome. Reps. Goodlatte and Moran dropped an extension bill yesterday in the House.

So what would that mean?

Straight extension, in the Senate, means the entire Finance Committee package for the farm bill is kaput. The $5 billion "permanent trust fund" for disaster aid is gone. Those billions in quirky conservation tax credits? Poof! Those are the big items. They greased the passage of the Senate bill. Without them, passing this bill is going to cause some serious, uh. . .discomfort.

It means that added money for nutrition--$4 billion--is also gone. So is the $1 billion increase for fruit and veggie snacks in schools and the other monies the specialty crop lobby received, meager though they are relative to their original, multi-billion dollar ambitions. The revamped conservation title that marries CSP with EQIP and improves both, refills the WRP baseline and otherwise expands conservation spending? Hasta la vista, baby.

Increased loan rates for wheat and other crops? The increases were pitiful. Once again, wheat growers, in particular, are getting the chaff. Compared to specialty crops, wheat is the old pro at being grateful for farm bill crumbs and a belly scratch. But those increases, too, would be erased in an extension bill. Increased MILC price supports for dairy farms? That pail gets kicked over, too.

Average Crop Revenue? Say buh-bye, now; say buh-bye! Phony payment limit reform built around an adjusted gross income of $750 trillion dollars? Or was it $750,000? Same difference. Anyway, it's gone too. I'll get over it.

There's more. Organic agriculture is getting modest increases for research, transition and other items in the Senate. It's not near what the sector needs, deserves, or should be insisting on, but what little is there would evaporate.

We'll need a name for a Senate straight extension bill. How about The Cotton and Rice Fleecing of Taxpayers And WTO Litigation and Trade Retaliation Jackpot Act of 2007? Because cotton and rice would be the big winners. The only winners, actually. CBO's baseline says those are the only crops likely to get significant bucks over the next five years through the price-triggers that would be held over from the 2002 bill, topped by generous automatic subsidies we've written about. And without any pesky, tightened subsidy caps.

Does that bill pass the Senate, even in a pre-election panic? Even if it's packed into some honking omnibus that maybe Tom Coburn himself would be tempted to vote for?

I'm thinking no. I'm thinking there's a crowd of senators who will stand in the way, and I'm thinking there could be 41 of them. But let's assume I'm wrong and a straight extension does pass the Senate.

So we conference "extension" against the House bill? The discordant tax provisions in the House and Senate were already a problem. But now the House finance provisions will have to go (the Senate strongly objects as do House Republicans and the White House), and with them goes all the pin money Nancy Pelosi made Charlie Rangel give Collin Peterson on that side of the capitol. That leaves only the budget gimmick money (postponed spending) and funds gouged out of crop insurance companies (always a plus). Not near enough money to provide for the increases in nutrition, McGovern-Dole, conservation, specialty crops...and all the rest of the small shiny objects that, in the dim dawn following the House mark up, glinted like reform in the eyes of the Speaker. Or at least in the talking points someone handed her, which have long since burned to a crisp in the wildfire criticism that blackened the House bill even before it passed.

Does Speaker Pelosi then whip passage of a conferenced, status quo farm bill the way she whipped the subsidy lobby's bill this past summer? Does she make her caucus vote for that?

If so, the one sure thing that would come out of an extension bill-House bill conference scenario is this: front page, Category 5 political disaster for Democrats.

They might as well set up their '08 campaign headquarters in the Superdome.

Editorial writers at every paper in the country will lock the "Auto-Scorn" button on their keyboards (that's F666, btw). The San Francisco Chronicle will launch a new insert, "More Ways The Farm Bill Sucks Weekly." The farm bill will rise ever higher on the lists of failures that have dragged congressional approval ratings ever lower, ever closer, to single digits.

Or we could end up with a fresh chance on the House floor to revisit subsidy reforms and direct payment cuts, in order to make other priorities whole while reforming Title I. This time there would be fewer offsetting baubles to palliate a majority of the House. Maybe this time House leadership wouldn't kill a straight up payment limit amendment in the Rules Committee.

We might also have an opening to debate and amend a rice- and cotton-centric Senate "extension" bill with no real redeeming features for most senators. We might have another chance, on the floor, to impose the Dorgan-Grassley subsidy cap, and maybe a meaningful AGI limit; or a reinvigorated debate over shifting the only available money--direct payments--to shoring up food stamps, funding conservation, supporting specialty crops, and meeting other needs. We might get another shot at trimming even more of the subsidy fat out of crop insurance companies.

Hard to know what's in the cards when they're collapsed in a pile.


November 15, 2007

Farm Bill
Dorgan-Grassley: The End of Southern Agriculture

No, make that the end of all US agriculture, and dependence henceforth on "foreign sources" for everything we eat.

I think that was the gist of Sen. Blanche Lincoln's (D-AR) appraisal on the Senate floor this afternoon of the most controversial policy choice now looming in that body's farm bill debate: the Dorgan-Grassley farm subsidy cap of $250,000 per farm, per year (fact sheet from the Sustainable Agriculture Coalition in the jump).

Evidently it comes down to this: eat poisoned foreign food, starve, or provide unlimited subsidies to the very largest rice and cotton operations in the South.

Forever.

Never mind that the subsidy lid in Dorgan-Grassley will affect only a relatively small portion of Arkansas farms. It couldn't possibly affect very many operations if it is reducing commodity program spending by just over $100 million per year (against projected annual expenditures of more than $8 billion).

Never mind that any of the operations that might be affected will have options for dealing with it, as the Commission on the Application of Payment Limitations To Agriculture made clear in 2003, in response to a congressional mandate in the 2002 farm bill. Here are those options, in one concise chart from Chapter 5 of that report.
Picture%201.png
This is a graphic depiction of how a gigantic farm might respond to tightened subsidy limits. It's not a chart of how America will become "dependent for our food like we are for our oil" on foreign countries if Dorgan-Grassley becomes law.

Let's also note the irony of the cotton and rice lobby scaremongering about the United States coming to rely on imported food if subsidy limits are tightened, when those very commodities rely so utterly for economic solvency on the export of their products. About half of the U.S. rice crop and 70 percent (or more) of the cotton crop is exported each year. That's right: cotton and rice survive by the grace of foreign countries who are willing to rely on a "foreign source" of food and fiber--us.

Take a look at the top farm subsidy beneficiaries starting with the Arkansas Department of Corrections, and subsidized farm businesses in Arkansas, for the three "program" years 2003-2005. Click on a few of those businesses and you'll commonly see a dozen or more pass-through beneficiaries collecting hundreds of thousands of dollars every year from taxpayers through these big operations.

And now, to steal a page from Dan Owens over at the Blog for Rural America, check out this example of what some of these operations look like: the 9,875 acre "Mississippi River Plantation/ Rice & Deer & Ducks" spread at the top of this page. Asking price: $35 million. Click through, scroll down, and see one of this property's biggest selling points: Government money, charted by year, and every single year it's above $200,000.

You can Google up any number of operations like this where the most important streams flowing through the property are not of fresh water but taxpayers' loot.

Based on the chart, had Dorgan-Grassley's farm subsidy cap of $250,000 been in effect, it would have trimmed the money for this $35 million Mississippi operation. But not by much in most years, and in some years, perhaps not at all.

Since when were taxpayers obligated to provide unlimited subsidies to cotton and rice businesses, when those businesses can comply with Dorgan-Grassley and still be worth $35 mil?

Since we started giving unlimited subsidies to gigantic rice and cotton plantations, that's when. It's time for change.

Mind you, it's not easy to explain to most American how $250,000 per year can possibily be called a non-repayable subsidy "limit." I've been trying for years, and here's the answer that works the fastest with almost anyone.

"But of course $250,000 is a limit--in Washington."

Continue reading this post below the fold »

Still Mulching

We here at Mulch want to apologize to our loyal readers for our past month of dormancy. Look for postings to begin sprouting in the near future. For excellent blow by blow analysis of the 2007 Farm Bill debate (or lack thereof) in the Senate, make sure and visit the Center for Rural Affairs' Blog for Rural America.