Taxpayers for Common Sense Action (TCS Action), a nonpartisan, budget watchdog group, urges you to oppose any effort to increase spending above the CBO baseline for commodity subsidy (Title I) programs in the 2007 farm bill. By establishing a low baseline in the Budget Resolution for the Commodity Credit Corporation, which oversees federal farm subsidy programs, you can take an important first step towards meaningful reform of the current wasteful federal farm support program.
The farm bill, which comes up for reauthorization every five years, includes a taxpayer-funded support program that rewards wealthy agribusinesses with out-dated Depression-era supports. Secretary Johanns stated in recent testimony that, “farmers are relying more on the market for revenue than payments from the Government.” We urge you to heed the Secretary’s appreciation that markets can and do work for farmers, and we call on you to reduce agriculture subsidies and make the tough decisions necessary to put our budget back on track.
The current subsidy system is broken for most farmers and rural communities, and for all taxpayers. Agriculture subsidies cost taxpayers billions of dollars annually, are inequitably distributed, and undermine our international trade relationships. Since 1995, more than $165 billion has been funneled to this country’s largest landowners and biggest agriculture producers, with annual costs to taxpayers exceeding $20 billion in many years. The World Trade Organization recently ruled against U.S. cotton subsidies, and the U.S. corn market faces a similar threat from Canada and a number of other countries. In order to successfully negotiate reductions in international trade barriers and open new markets for our surplus production we must ensure our domestic policies meet international agreements.
Elimination of agriculture subsidies will reduce fiscal waste, set the stage for improved trade negotiations, and most importantly move farm policy in a more market-oriented direction. We urge you to oppose any increase in the baseline for subsidy payment to farmers, and to begin the process of subsidy reform now. If you would like to discuss this issue further, please contact me or Demian Moore on my staff at (202) 546-8500 x118.
Sincerely,
Ryan Alexander
President
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