Sunday, February 06, 2005

Misunderstanding Farm Programs (1 of X)

Here we go, according to a Farm Belt paper and the Grey Lady:

DesMoinesRegister.com: "President Bush wants to slash farm payments to the nation's largest farms as part of a plan to reduce federal agricultural spending by 3 percent next year.
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NYTimes
In setting a firm overall limit of $250,000, the president's plan would tighten requirements for the recipients of such payments to be "actively engaged" in agriculture, and it would generally prevent farmers from claiming additional payments through multiple entities.
There are a lot of issues with the farm programs we currently have, but the press does not do a good job in explaining them. As President and Congress fight over this issue I plan to comment and explain. A couple things to be careful of:

"subsidy" --the last time I checked the dictionary it meant a payment, but it's often expanded to include indirect subsidies, tariff barriers, tax provisions, etc. While that's a common tactic of interest groups, the Times, at least, has not usually made the distinction when it comes to farm programs.

"farmers"/"recipients" --one of the biggest areas of confusion is between what when I was in USDA we called "warm bodies" and those who aren't. No, we weren't talking about dead people but about legal entities, such as trusts, joint ventures, partnerships, corporations, etc. The other big distinction is between those with dirt under their fingernails and those with clean hands.

More to follow




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