Farm Subsidy Limit Act

[Gabu]

I believe that we now have an opening, so here we go.

As introduced by Sen. DanielX:

Farm Subsidy Limit Act

Section 1: All future agricultural subsidies, starting in FY2007, shall be capped at a value of $15 billion per year in FY2005 dollars, to be adjusted for inflation.

Section 2: All present subsidies shall continue through FY2006. The Department of the Treasury, in conjunction with Congress, shall be responsible for a thorough review of current subsidies, to determine where neccesary reductions shall be made.

Section 3: These restrictions will be lifted in only in the following circumstances:
    3.i. During a time of Congressionally declared war;
    3.ii. Invididual aid in Federal Disaster areas;
    3.iii. A Congressionally declared famine emergency.

I hereby open debate on this bill.

[A18]

Why in the world would you have to raise farm subsidies because of a war?

[Rob]

Why in the world would you have to raise farm subsidies because of a war?

Perhaps the reasoning is that since there will presumably be less trade, there will be less demand for the farmers' products, and therefore they require higher subsidies.

However, the opposite would result. Largely free of foreign competition, farmers would be able to sell to the domestic market at very favorable prices. War would create an agricultural boom.

[12th Doctor]

I disagree with anything that applies absolute caps to any situation.  You never know what might happen.

[Peter]

Apologies for my ignorance, but what is the present spending on farm subsidys?

Also, what is the rationale behind capping it?

[MasterJedi]

Apologies for my ignorance, but what is the present spending on farm subsidys?

Also, what is the rationale behind capping it?

I'd also like to find this out too.

[jokerman]

I think the $15 Billion cap needs to be annually ajusted to the CPI.

[John Dibble]

Apologies for my ignorance, but what is the present spending on farm subsidys?

I'd also like to find this out too.

It varies from year to year, I believe.

This site should give you an idea of where it's been around. http://www.ewg.org/farm/regionsummary.php?fips=00000

When I was running for Senator, I wanted to cut subsidies - I was planning on introducing a five year decrease in subsidies at a decrease of %10 of the current rate per year. That wouldn't be a cap, it would just eventually cut the possible handouts in half.

[PBrunsel]

I support this. It may hurt me against farming constituents, but I side with Henry Wallace on farm substides, that they are simply paying farmers to be idle.

[DanielX]

PBRunsel, you already brought up one reason for this act. Another is the simple fact that the government is giving away way too much of the taxpayer's money.

I think the $15 Billion cap needs to be annually ajusted to the CPI.

That actually sounds like a good idea.

I second Cosmo Kramer's notion, and would like to submit an amendment to modify Section 1 to the following:

All future agricultural subsidies, starting in FY2007, shall be capped at a value of $15 billion per year in FY2005 dollars, to be annually adjusted according to the CPI.

[A18]

Why not just repeal all farm subsidies?

[jokerman]

Why not just repeal all farm subsidies?

Because we're not you.

[A18]

You don't care about poor people?

[jokerman]

You don't care about poor people?

What the hell does repealing farm subsidies have to do with helping poor people?

[MasterJedi]

You don't care about poor people?

What the hell does repealing farm subsidies have to do with helping poor people?

I think he means then more money could be spent on poor people. But that's not what the money would be spent on.

[A18]

Lower taxes for all.

[True Federalist (진정한 연방 주의자)]

Considering that in the US today, the myth of the family farmer is what is used to justify subsidies to large argi-businesses, I am in favor of ending most if not all agricultural subsidies

[King]

We could just eliminate all government agriculture programs, save $70 billion, and put it into a tax cut, deficit reduction, or a different program like Medicare/Medicaid.  It would a radical change, but might have some good effects on the economy.

[Bono]

Considering that in the US today, the myth of the family farmer is what is used to justify subsidies to large argi-businesses, I am in favor of ending most if not all agricultural subsidies

I don't think farm subsidies are even constitutional, given that clause 4 of section 5 of article I provides for the establishment of a "market where competition is free and undistorted."

[True Federalist (진정한 연방 주의자)]

Considering that in the US today, the myth of the family farmer is what is used to justify subsidies to large argi-businesses, I am in favor of ending most if not all agricultural subsidies

I don't think farm subsidies are even constitutional, given that clause 4 of section 5 of article I provides for the establishment of a "market where competition is free and undistorted."

Well, if you think so, then make a Federal case out of it.  However, please be a bit more specific that this bill about what constitutes a subsidy please.  One man's subsidy is another's soil conservation program.

[Colin]

I'm sorry for not being very knowledgable about this issue but I have a few questions.

First what is CPI?

Secondly, why would it be better to set a cap on this for, basically, all fiscal years instead of setting a farm subsidy cap every fiscal year so that we can change the cap depending on certain economic issues?

[Emsworth]

First what is CPI?

The Consumer Price Index tracks changes in the price of a variety of goods and services purchased for consumption. It is used to measure inflation.

I would suggest to the Senate that the core CPI (which excludes volatiles) would perhaps be a better measure of inflation than the CPI.

[jokerman]

First what is CPI?

The Consumer Price Index tracks changes in the price of a variety of goods and services purchased for consumption. It is used to measure inflation.

I would suggest to the Senate that the core CPI (which excludes volatiles) would perhaps be a better measure of inflation than the CPI.

I'm ok with that.

[MAS117]

I don't know jack about Farm Subsidies so I'll take a backseat on this one and read the debate.

[A18]

CPI: http://minneapolisfed.org/Research/data/us/calc/index.cfm