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Federal Spending & The Budget

Missed Reform Opportunities

If you were expecting top-to-bottom overhaul of federal farm programs, you are in for a rude disappointment. And this time it's the Republicans who have opted for the status quo.

  • Congress refused to include budget provisions involving dairy farming which would have saved $800 million.

  • Real reforms in cotton and rice programs may not occur until the 21st century.

  • The current budget package does cut $12.3 billion in farm spending through 2002 -- mostly from cuts in crop subsidies.

  • The best progress has been made in reform of wheat and corn programs where farmers will receive declining fixed payments rather than complex subsidies tied to production levels.

Politics played a role in efforts to curb federal dairy programs. What GOP presidential hopeful wants to offend New Hampshire milk producers three months before that state's primary?

Source: Jeff A. Taylor, "Socialist Farm Programs Saved," Investor's Business Daily, November 29, 1995.

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