Support Grassley-Dorgan Subsidy Reform Amendment

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November 02, 2005
Programs: Agriculture

Dear Senator:

Taxpayers for Common Sense Action (TCS Action) strongly urges support of the Grassley- Dorgan Farm Program Reform amendment to S.1932, The Deficit Reduction Omnibus Reconciliation Act of 2005. TCS Action has long advocated reform of our crop subsidy system and with the nation now facing massive deficits and hundreds of billions of dollars in reconstruction efforts, it is more important than ever to eliminate unnecessary expenditures and wasteful programs. TCS Action will include this vote in our annual scorecard.

Commodity payments are expected to cost taxpayers more than $24 billion in this year alone, are inequitably distributed, and impact our global trade relationships. Unregulated payments reward production levels instead of supporting farmers in real need. Since 1995, the bulk of more than $140 billion has been funneled to the largest landowners and biggest producers in only a handful of congressional districts. According to recent USDA data, only 8 percent of producers receive 78 percent of the subsidies.

Only one-third of America’s farmers are eligible for subsidies at all. Producers of our livestock, fruits, vegetables, and other farm products continue to compete in the marketplace without government intervention. Yet despite the fact that these farmers receive no subsidies, they continue to be negatively impacted by retaliatory international tariffs brought against the United States.

Moreover, the United States is currently engaged in crucial international trade negotiations that hinge on progress in the agriculture sector. It is imperative that we take a leadership role in negotiating trade agreements that open export markets for our farmers and lower trade barriers. To do so, we must ensure that our domestic policies meet international agreements and set the stage for future successful negotiations.

Again, TCS Action urges you to support Senators Grassley (R-IA) and Dorgan’s (D-ND) amendment to adopt a $250,000 per farm-couple payment limit and to reduce the proposed cuts to the non-trade distorting Conservation Reserve and Conservation Security Programs. Enacting these measures will provide $1.1 billion in savings, reduce excessive, misdirected spending, move our farm policy in a more market-oriented direction, and send a strong message of positive reform to our international trading partners.

Sincerely,
 
 
Jill Lancelot
President and Co-founder

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