Lord knows American farmers have had plenty of justified reasons to complain in recent years about the cost of farming and the low returns on grain and livestock. But lately, grain prices have been through the roof, partly because of ethanol production.
So, with things turning fairly rosy, is it time for Congress to consider cutting federal subsidies to farmers and people who own land but don't farm? Congress tried this week but crumbled under the pressure.
The Wall Street Journal reports that any plans to cut the farm subsidy program have been plowed under. It's likely the program will be as large this year as ever. The
Journal gives an inside look at how the campaign to keep the money flowing unfolded:
"At some point, you have to step back and ask, 'Does
this make sense for the American taxpayer?'" says Rep. Ron Kind. The
Democrat from Wisconsin sponsored a measure that would have slashed
about $10 billion over five years in subsidies -- and saw it get
crushed on the House floor.
Grain prices are on a tear this year. On Wednesday,
corn prices closed at $5.52 a bushel, up from about $2.20 in 2006, and
near the all-time high of $5.70 set earlier this month. U.S. farm
income, buoyed by demand for grain from rising middle classes around
the globe and the biofuels industry, is projected to reach a record
$92.3 billion this year. Still, farmers are expected to collect $13
billion in federal subsidies this year, according to the U.S.
Agriculture Department, including payments for commodities, land
conservation and emergency assistance.
A little more than a year ago, the stars appeared to
be aligned for significant changes to the complex piece of legislation
known as the farm bill, which allots billions of dollars to farmers and
landowners to help stabilize grain prices, make products more
competitive abroad and provide a plentiful food supply.
Get Local
Click here to look up who gets federal farm subsidies in every zip code. Even in Beverly Hills 90210 you will find familiar names taking in farm subsidies. Ain't a whole lot of wheat growing there, just as there aren't many farms in my zip code near St Pete Beach! There are plenty of people in 33707, though, getting subsidies.
Hey Al - when doing this story, journalists tend to...
