NTU urges all Senators to vote “NO” on H.R. 2, the 2018 Farm Bill. Apart from minor changes, this bill is essentially a reauthorization of the costly 2014 policies.
A growing wealth of data indicates that far from a safety net that responds to true disasters and crises in the agriculture economy, taxpayers are funding a golden parachute for wealthy agribusinesses that can and should bear more of their own risk.
The federal government’s commodity programs tip the scale in favor of certain crops, distorting markets. Guaranteed payouts under different programs create a moral hazard and incentivize planting in marginal land, leading to environmental problems. Today, the U.S. cheese stockpile reached a record high due to overproduction and U.S. taxpayers could be asked to purchase the surplus.
The overwhelming evidence is that our current farm policies, still rooted in the New Deal-era philosophy that government can orchestrate the ag economy through subsidies, price, and supply controls, are woefully out of step with modern farming. The status quo is unacceptable to taxpayers, consumers, and farmers. A more responsive safety net, targeting those who need it most, would put all types of farms and products on an even playing field, leading to increased innovation and diversity while avoiding the painful side effects, such as high land prices, of today’s programs.
Instead of more of the same corporate welfare, Congress should focus on securing access to markets as the best way to strengthen the agriculture sector. Dollar for dollar, exports contribute 10.4 times more income to the farm economy than direct government payments.
Roll call votes on H.R. 2 and S. 3042, the Senate substitute, will be included in our annual Rating of Congress and a “NO” vote will be considered the pro-taxpayer position.