Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Thursday, March 8, 2007

Budget rules for farm bill

The Congressional Budget Office has published a 193-page volume called "The Budget and Economic Outlook: Fiscal Years 2008 to 2017.

In that massive document is this paragraph:

CCC outlays to agricultural producers came to $18 billion in 2006, after varying between $9 billion and $31 billion in the preceding six years. CBO estimates that those outlays will fall to $10 billion in 2007 and will range between $8 billion and $10 billion over the next decade. The reduction in 2007 primarily reflects lower income-support payments to farmers because of historically high crop prices, which are attributable in part to the strong market demand for ethanol. Following directions established by the Deficit Control Act, CBO’s baseline assumes that most major farm programs, which are scheduled to expire in 2007, will continue over the
2008–2017 period.


TK; High commodity prices are taking budget dollars away from the farm bill, and likely hurting chances for robust funding of specialty crop priorities. While farm state members of Congress are fighting for more money to be reserved for the farm bill, the next couple of weeks look large in the budget process, notes Demian Moore, spokesman for the Taxpayers for Common Sense Action. That watchdog group is urging members of Congress to oppose any effort to increase spending above the CBO baseline for commodity subsidy (Title I) programs in the 2007 farm bill.

From their letter:
By establishing a low baseline in the Budget Resolution for the Commodity Credit Corporation, which oversees federal farm subsidy programs, you can take and important first step towards meaningful reform of the current wasteful federal farm support program.

TK: The specialty crop industry wants reform, all right, but a budget resolution that would take tens of billions away from farm bill funding over the next ten years is not necessarily what they had in mind.

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