Federal Spending & The Budget

Freedom To Farm

The "Freedom to Farm Act" signed by the President earlier this month contains language "to ensure the benefits of popcorn are available to the people of the United States" by "strengthening the position of the popcorn industry in the marketplace."

Those truly interested in returning farming to market-based economics say such ludicrous provisions are indicative of the timidity of the Farm Act. They charge that its reforms are more illusory than real, and less permanent than might be expected.

What does the Farm Act do?

  • With a cap on farm spending, the law replaces traditional subsidy payments to farmers with a fixed but declining level of transition payments -- $36 billion over seven years.

  • It also ends federal authority to hold farm land out of production.

  • However, at the end of seven years, unless Congress acts, the old farm policies -- subsidy payments and land set-asides -- automatically come back into effect.

Although promoted as allowing farmers to plant whatever crop they wanted, the Act prohibits farmers now growing subsidized crops from switching to anything other than another subsidized crop. A wheat farmer, for example, would only be allowed to plant other grains, cotton or rice.

What else doesn't change under the new law?

  • Sugar, peanuts and most dairy products will continue to be subsidized to the tune of $2 billion a year -- guaranteeing higher consumer prices.

  • Soybean subsidies will increase.

  • Taxpayers will continue to foot the bill for the USDA's costly Market Promotion Program promoting U.S. agricultural products overseas.

  • Landowners won't get regulatory exemptions promised for temporary wetlands under one acre in size.

The Act also creates new bureaucracies:

  • A "National Natural Resources Conservation Foundation" is created to promote conservation of natural resources on privatelands.

  • A new food safety panel -- opposed by both consumer and meat and poultry industry groups -- is added to the USDA.

Finally, rather than end sugar subsidies which allow inefficient sugar producers to operate in and pollute the Everglades, the legislation calls for spending $300 million to acquire about 100,000 acres there.

Source: Former Gov. Pete du Pont (National Center for Policy Analysis), "Medley From the Popcorn Follies," Washington Times, April 30, 1996.


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