Farm Subsidies: House Appropriations Committee Approves Cuts

WASHINGTON -- A House committee voted Tuesday to cut farm subsidies to pay for deficit reduction and other budget priorities, chipping away at the billions of dollars a year that are directed to farmers.

The votes in the House Appropriations Committee may be a preview of what is expected to be a tough year for agriculture programs. Congressional lawmakers have increasingly looked to billions of dollars in farm subsidies as a source of money for other priorities as crop prices have reached record levels.

In a surprise move, the committee approved an amendment by Rep. Jeff Flake, R-Ariz., to lower the maximum adjusted gross income a farmer can have to earn certain subsidies. While many farmers can now make as much as $750,000 annually and still receive subsidies, Flake's amendment would lower the threshold for some to $250,000. Flake did not say how much money would be saved by the change but said those dollars would go toward reducing the deficit.

The committee also approved an amendment by Flake to use domestic farm subsidies to pay for $147 million in annual payments to Brazil's cotton sector to settle a World Trade Organization dispute. The committee later eliminated those payments to Brazil entirely, shifting the money to domestic feeding programs.

Both of Flake's amendments would dip into direct payments to farmers, which are a type of subsidy paid regardless of crop price or yield. They cost the government about $5 billion a year and have been a frequent target of critics.

The two amendments passed by unanimous consent, which Flake said may be a sign of debates to come.

"It says a lot that no one is publicly willing to defend this kind of largesse," he said later.

The original bill written by Republicans had made large cuts to domestic feeding programs and foreign food aid but no major cuts to farm subsidy programs. Democrats and some conservatives criticized that legislation because it did not dip into subsidies.

Comments

[Francisco Enriquez Juson]

12:33 AM on 06/02/2011

yes,most farmers(small or large) are hard nose republicans and do not want big government but when it comes to safety net and big welfare to their business. boy, they sure jumped. besides, when it comes to social health care such as food stamps or medical care and services, i don't see or hear them complaining.

most farmers hates immigration but when it comes to cheap labor i don't hear them complaining. most small and large farmers have workers who are usually hispanics doing the dirty works and paying cheap labors.

[kkmousse]

11:46 AM on 06/02/2011

I think you nailed it right on! Now they should go after the subsidies for Big Oil and Corperations. WE need the money to pay down the debt. Let them all give a lot!

[brokerallen]

10:43 PM on 06/01/2011

All subsidies to Genetically Modified crops should be cut regardless of earnings.

[Rational Voice]

05:04 PM on 06/01/2011

Sure ... let's screw the American Farmers, but not big-oil?! HUH!? Uncle Sam has no love for his citizens.

[kkmousse]

11:50 AM on 06/02/2011

Why not, lets just increase the trade deficit and import all our food! Big oil needs to be looked at also.
Farming is an important aspect of any country. You never want to be dependent on importation of important things like food, ever. This could lead to another Country having control over your domestic policies....not a good thing.

[bad spelling grammar]

04:07 PM on 06/01/2011

"Flake did not say how much money would be saved by the change but said those dollars would go toward reducing the deficit."

This number is important; don’t start celebrating yet until some real numbers are released to the public eye. Next we need to remove oil subsides as well. Subsides are welfare programs for business which theoretically republicans should HATE because it is the government meddling with business. But republicans are the ones who back agriculture and oil subsides more than anyone else. But when it comes to the government trying to give health care to everyone, you know something that helps people, they scream and call it socialism blah blah blah. I guess helping the majority of American citizens is a bad thing and only helping the rich/ minority (oil and agriculture) is a good thing.

[rodjard]

03:43 PM on 06/01/2011

As an Indiana Democrat on a fixed income I cannot feel sorry
for any republican farmer. I am surrounded with them, but I
don't expect any of them will invite me to Sunday dinner.
There are a few hard working real people Family Farmers who
grow and process their own feed. Feed it to their own livestock
and market locally. These are few.

[ABACADABRA RABBIT]

04:51 PM on 06/01/2011

Wait until your food gets more expensive.

[rodjard]

05:06 PM on 06/01/2011

That has never stopped, month after month. I
am going to raise rabbits for food and feed
them grass from the yard. I already eat greens
out of the yard.

[DennyCrane]

03:35 PM on 06/01/2011

Good. Now how about cutting oil subsidies?

[Rational Voice]

05:06 PM on 06/01/2011

They already voted NO on cutting oil subsidies. Uncle Sam would always rather screw average US citizens than fat-cat bankers and oil-execs -- those people pay his salary, and we all know you don't bite the hand that feeds ya'!

[French Toast]

12:33 AM on 06/02/2011

Ahh the small farmer myth. Always loved that one. Works great on the folks who have never been on a farm.

[miffedinar]

03:33 PM on 06/01/2011

Well, I'll be - something somewhat sensible finally. Still - earning $250K and getting subsides? Really? If I earned half that I'd be ecstatic.

[Donald Rumsfeld XIV]

03:23 PM on 06/01/2011

Good! Only big Agribusiness and retail have benefited from this. Now, let's move on to cutting oil subsidies, shall we?

[Steve Rockett]

03:17 PM on 06/01/2011

Every farmer I ever met was a republican. Now they will get a taste of the whip being snapped by the right wingers. Michele Backwards got hers, so now it must stop. The deficit is not the issue, but the right wing has convinced everyone that it is. We should be spending in deficit mode to enhance employment. After the economy recovers, then we can reduce the deficit. Our biggest issues are getting out of the wars.

[Gestas]

03:09 PM on 06/01/2011

I've never meet a single Farmer that wasen't a Republican...Now they can join the "Every Man of Himself" crowd along with the rest of us.

[nothing2fear]

02:40 PM on 06/01/2011

About time, now lets eliminate the Oil subsidies.

[rodjard]

02:33 PM on 06/01/2011

Rather than importing half the things that poor people eat from
Mexico through NAFTA how about growing them here and
letting the free market allow them to be affordable to us.

Everyone can prosper in the bread basket of the world,
or at least have plenty to affordibly eat.

[nothing2fear]

02:45 PM on 06/01/2011

Controlling and manipulating markets is very profitable. They have maximized their operations, found and created cheap labor, the only thing left in order to create greater profits is to keep raising prices on their product. Basic economics, fundamental Capitalism.

[dhinds]

09:03 PM on 06/01/2011

Food imports from Mexico are mainly tropical and subtropical fruits, out-of-season fruits and vegetables and a few labor intensive crops.

[Timma]

02:01 PM on 06/01/2011

...many farmers can make $750,000 / year? WTF? Sign me up...I've known a lot of farmers imy life and if I'd suggested the notion they stood to make 3/4 million a year I'd never be invited back to spend time with them...yes time to review farm subsidies...but sadly all this is going to benefit are the ADM's and Monsantos of the world...goodbye family farm...

[nothing2fear]

02:54 PM on 06/01/2011

Monsanto really needs to be stopped. Their genetically altered products and the SCOTUS (which found against an organic farm that was next to a Monsanto farm, spoiling the crop of the organic farmer with their genetically altered grain which blew in with the wind) are leading to a time when all the grains in the world will be patented and you will have to pay Monsanto every time you eat bread or???

I understand they are recking havoc for the traditional subsistance farmers in Mexico ruining their crops by infecting them with the Monsanto patented genetics.

[Timma]

03:34 PM on 06/01/2011

I'm right with ya nothing. You probably heard about the lawsuit against Alberta wheat farmers for growing GMO terminator seed that had blown into thier land and srouted. Monsanto filed suit. I haven't followed the it don't know what happened. Famres in India who value the cycle of life especially in food grains became outraged and rioted when they realized their reserve seeds from Monsanto rice woudn't reproduce the following year. Check out Monsanto DVD. If that doesn't scare anyone...well - I'll reserve comment...fanned and favorite...

[brokerallen]

10:50 PM on 06/01/2011

You comment is absolutely true. Thanks to the media's failure to expose this diabolical move by a few corporate giants. Most people are not well informed on Genetically Modified foods. There are other companies that are part of this conspiracy. Dow is a big player and so is Bayer. Good Post.

[halfpricefaustian]

01:58 PM on 06/01/2011

So now get rid of the ethanol subsidy.

[mmsuki]

01:40 PM on 06/01/2011

Holy moly---I actually agree with something Jeff Flake has done.