Congress deserves to reap veto of farm bill
By Jim Wooten | Tuesday, May 13, 2008, 07:24 AM
The Atlanta Journal-Constitution
Everything most Americans —- and all fiscal conservatives —- hate about Congress is contained in a five-year, $300 billion farm bill headed to a certain presidential veto.
It’s dishonest. Congress claims that it’s only $10 billion more than the administration wants. In reality, though, said Deputy Secretary of Agriculture Chuck Conner in a conversation Monday, it’s about twice that.
“It’s about $20 billion over budget because they have managed to hide the true cost of the bill quite a bit.” They are doing it, he explained, by moving payouts beyond the time frame used to calculate costs while moving up revenues from things like crop insurance.
Congress did the same thing last year in projecting the cost for the State Children’s Health Insurance program. Spending on that bill, which the president vetoed, was projected to go from $5.6 billion per year to $13.9 billion in 2012, and then —- as Congress employed the game it now plays on the farm bill —- would “drop” 69 percent in 2013 to $7.8 billion and further to $4.8 billion in 2014. Dishonest.
To hide the true cost of the farm bill, “they take a program that they know has to be funded, like disaster money and a couple of others that they know they will have to come back to extend,” said Conner.
In addition to dishonesties, it contains outrages, one after another. An example is the sugar program, which costs taxpayers in excess of $2 billion annually. “The sugar program is essentially a producer cartel run out of Washington,” said Chris Edwards, director of tax policy at the Cato Institute.
“Many people thought you could not get more heavily involved than the government already is under the current program,” said Conner. That program exists solely to benefit sugar beet producers, mostly in Minnesota, Michigan, California, Idaho and North Dakota, and sugar cane producers, mostly in Florida and Louisiana.
It’s designed to keep sugar prices high by requiring that 85 percent of the sugar sold in America be produced here. Taxpayers buy sugar at roughly twice the world price and, heretofore, stored it for sale back when supplies were tight. “This bill says, ‘no, you can’t store sugar, you have to sell it immediately for ethanol,’ ” said Conner.
The value of sugar for ethanol production is about 2 cents per pound. The world price of sugar is about 12.5 cents per pound. “We are buying it at 23 cents a pound and are required to sell it for 2 cents a pound,” explained Conner. “What kind of deal is that for U.S. taxpayers?”
Lousy, of course. Outrageous, certainly. Insane public policy. “I am not talking about a few million bucks here,” said Conner. “This is hundreds of millions of dollars.”
Outrages are evident, too, in a much-publicized provision that would give the owners of thoroughbred racehorses a $93 million depreciation write-off. It is a first, said Conner, the first time that a farm bill has been used to write a tax bill. “These are provisions that would never have passed on their own.”
Outrageous, too, is the provision that suddenly appeared requiring taxpayers to spend $200 million to buy land in Montana that has no farm-related value.
Most outrageous of all is the refusal of a Congress that denied $600 stimulus checks to some in the middle class but now refuses to expunge even the wealthiest of farmers from the dole. The administration proposed to start weaning farmers whose nonfarm income exceeded $200,000. Congress raised that to $500,000 or $1 million for married couples. For those whose income is solely from farming, it’s $750,000 and $1.5 million. “We only targeted the top 2 percent” of farmers, said Conner. As rewritten, “this is going to deny benefits to virtually no one in America,” he said.
“Scarce tax dollars are hard to come by. The notion that people whose annual income is in the million-dollar range, the idea that we have got to use tax dollars to help them, is beyond explanation. We should say to them that ‘there is an American Dream out there and you are living it, but don’t expect any more tax dollars from people who are struggling to find dollars to put gas in the tank.’ “
Within days, Congress will pass this bill. It’s atrocious legislation deserving of the quick veto it’s certain to get.