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Mar 1, 2005 12:00 PM
by Leon Corzine Guest columnist
There's a popular old adage that says, “If it isn't broken, don't fix it.” That saying came to mind in early February when the administration released a budget proposal that attempts to whittle down the federal deficit by “fixing” a farm bill that isn't “broken.”
America's farmers understand that our nation faces huge federal budget deficits and that Congress and the administration have a responsibility to address the problem. Accordingly, we're willing to do our part. However, farm program spending — which constitutes less than one-half of one percent of the federal budget — is being disproportionately targeted for budget cuts. We believe the burden of reducing the nation's budget deficit needs to be broadly shared by all government programs — not just the farm safety net and other agriculture programs.
The safety net provided by the 2002 farm bill has proven to be a sensible and fiscally sound piece of legislation. When commodity prices are high, federal support is substantially reduced and farmers earn their income from the market. Of course, generating income from the marketplace is how farmers prefer to make a living. When commodity markets experience depressed prices and family farmers need assistance to sustain their operations, the support program kicks in.
Through the first three years of the 2002 farm bill, most farmers have not needed to rely heavily on support programs. In fact, farm program costs have been $15 billion less than the costs initially projected by the Congressional Budget Office in the spring of 2002, a fact often unreported and overlooked in the budget debate. Unfortunately, the administration is proposing funding cuts for farm support programs at a time when commodity prices are slumping and production costs are rising sharply. Reducing direct payments by 5% across the board and restricting marketing loan assistance to historical production levels from the mid-1980s would have severe consequences for farm families across the nation during this period of depressed prices.
It is also important to note that the 2002 farm bill does not expire until 2007. Any mid-stride changes to the bill would be equivalent to reneging on a contract with the nation's farmers. The bill provides the stability necessary to ensure farm families remain viable in today's market. Reopening the legislation would undermine the long-term investments and business plans that farmers developed with the understanding that the 2002 farm bill would be untouched for the full five-year term. Congress should fulfill its contract with American agriculture and wait until 2007 to consider changes to our country's agriculture policy.
It often goes unnoticed that America's farmers and ranchers aren't the only beneficiaries of effective farm policy. An analysis by the House Agriculture Committee shows that the 2002 farm bill costs each American citizen about $0.13 per day. That's a small price to pay to enjoy the most affordable, safest and most abundant food supply in the world. In contrast, the average citizen spends $23.45 per day to support the total federal budget.
Additionally, the 2002 farm bill — called the “greenest” farm bill ever — offers unprecedented levels of funding for conservation. These programs help farmers prevent soil erosion, preserve and restore wetlands, enhance wildlife habitat and improve air and water quality. There also are initiatives to accelerate the development of renewable fuels and reduce our dependence on foreign oil.
As a consumer, I cannot help but be concerned about our nation's budget crisis. And as a farmer, I'm willing to do my fair share to help pare down the deficit. However, the budget should not be balanced at the expense of a farm policy that is working well for America's farm families and our nation's economy. It isn't broken and it doesn't need fixing.
Leon Corzine is president of the National Corn Growers Association.
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