
Federal Spending & The Budget | |
Are Milk, Cotton Boards On Verge Of Scandal? |
Under an act of Congress, the Cotton Board and Cotton Inc. collect $60 million a year from cotton farmers to promote the sale and use of cotton. They are only two of a number of quasi- public bodies which the U.S. Agriculture Department is supposed to oversee in order to ensure funds are legitimately spent. But critics, including the General Accounting Office, charge the department has repeatedly failed to exercise its authority. As a result, funds reportedly are going for lavish entertainment and other purposes which have little or nothing to do with promotion of the commodities. Moreover, critics question whether such promotion programs have any positive effect whatsoever.
Economists point out that the costs of the programs are ultimately passed along to consumers through higher product prices. Nevertheless, producers have no choice but to contribute to the programs -- even when times are hard. This year, cotton farmers have suffered one of their worst growing seasons in history. Last month, the Agriculture Department's own inspector general recommended that the milk promotion program be suspended because of millions of dollars in questionable expenses. Source: Sharon Walsh, "Cotton Program Soft on Oversight," Washington Post, November 25, 1998. For more on Agriculture http://www.ncpa.org/pd/budget/budget-7.html |
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