Corn Commentary

Farm Bill Still Stuck

It appears as though another extension of the 2002 Farm Bill is inevitable, since the current extension is set to expire in just a few short days and Congress is still stuck on working out funding for a new bill.

Even though key agriculture committee members from both houses and both parties expressed optimism last week that a compromise was in the works, virtually nothing was accomplished, and Congress is recessing this Friday for Easter, the day before the current extension expires. The latest word is that they are hoping for a compromise by mid-week so that staff can work over the recess on the details.

Meanwhile, the Washington Post editorialized on the farm bill Sunday, basically saying that because corn prices are high and net farm income is up, there is “no justification whatsoever for spending billions more on agriculture.” Here’s an excerpt:

“…in this flush time for farmers, House and Senate conferees are contemplating a farm bill that might cost $10 billion more over the next decade than the current law would have. The tentative $280 billion-plus price tag includes needed spending on nutrition and soil conservation programs — but also about $5 billion a year in cash transfers to corn, soybean, wheat, cotton and rice farmers over the next five years. So far, there are no meaningful limits on the amount each farm enterprise can receive. Thus, plenty of this federal largess will be showered on people much richer than the average American, who is struggling with higher food costs.”

There are about 20 comments so far on the editorial, many of which point out the importance of farm programs. This is another great opportunity to at least try to educate the general public.