Farm Subsidies Abolition Bill

[Emsworth]

Farm Subsidies Abolition Bill

1. All farm subsidies are hereby abolished, effective from Fiscal Year 2006.
2. The Farm Subsidy Limit Act, and all other laws contradicting clause 1, are hereby repealed.

Sponsor: Sen. Ebowed

[Emsworth]

I strongly support this bill, and urge its passage.

[Emsworth]

Someone, please amend this.

Ah, just as Bono predicted.

I do not believe that the government should be subsidizing any particular market. Some people justify farm subsidies on the grounds that farming is a risky endeavor. But this is true for any enterprise. When no other entrepreneurs are being especially rewarded for their risks with subsidies, I don't see why farmers should be treated any differently. Others justify farm subsidies on the grounds that the price of food tends to fluctuate. But again, this is true of any business.

Once the government starts subsidizing farmers, it enters into a vicious cycle. Farm subsidies encourage overproduction, which leads to dumping, which leads to falling prices, which leads farmers to demand more farm subsidies.

In addition to being economically harmful, I would argue that they are also quite unfair. There is no particular reason for which the government should redistribute taxpayer money to wealthy farmers (whether "family" farmers or not).

[Emsworth]

The siege i worked with in the Senate would have vetoed this crap,but unfortunately he has sublimated himself to the senate.

No offense intended, but might I ask: what is your argument in favor of the economic or social necessity of farm subsidies?

[Emsworth]

It is often argued that farm subsidies help farmers. On the whole, however, I believe that they actually hurt. When the government subsidizes farmers, it encourages them to produce more than they actually should. The excess products flood the market, driving prices down. In many cases, farmers are forced to practice dumping--selling at a price that is lower than the cost of production. When prices go down, a few farmers demand even more subsidies, so that they can remain afloat. This leads to more overproduction, more dumping, a further reduction in prices, and a further demand for even more subsidies.

I think that I hardly need to remind the Senate of the grave difficulties caused by overproduction during the Great Depression.

I request that a Senator asks to suspend action on this bill until Al can post tomorrow.

I do not believe that such an action is necessary, Mr. Secretary. The bill must stay on the floor for at least three days before receiving a final vote; until then, I see no problem with allowing other Senators to post.

I fully support cutting subsidies to farming, and said so in a previous spending debate on arts, but I can't say I back immediate abolition.

I would not object to whatever transitional measures may be necessary. But I do not wish to stretch this out any longer than it needs to be. New Zealand gave a mere eight months' notice before abolishing subsidies in 1986--despite the doomsday predictions of many, agriculture improved considerably.

[Emsworth]

As I explained before, much of the "over-production" goes into the Third World, under those reduced prices.  Without that over production, millions of people will starve to death, before we can get farms going in other parts of the world.  If people are starving, they will try to get to places where food is more abundent.  This will cause a refugee crisis elsewhere.

Agricultural products from Atlasia and other Western countries, by being dumped in less-developed countries, cause considerable difficulties for the local farmers in those countries. Atlasian farmers are able to undercut them. By subsidizing their own farmers, and encouraging overproduction and dumping, the West perpetuates poverty in the "Third World."

The World Bank estimates that the abolition of farm subsidies in Western countries would lift over a hundred and fifty million people out of poverty (source). The real human benefits of abolishing distortive subsidies cannot be ignored, even if those who benefit include foreigners.

Also, you attempt to allude to the Depression is a bit of a scare tactic, since the subsidies did not lead to depression...

I never asserted otherwise. But overproduction surely exacerbated the suffering of farmers during the Depression.

You must be logged in to read this quote.

Ah, I see. Well, I would have no problem giving that assurance.

[Emsworth]

P.S.  I was unaware that we were in a depression at the moment, but we sure as Hell will be if you guys keep slashing federal aid and minimum wage laws.

Well, to be accurate, we didn't slash minimum wage laws; the responsibility has merely been transferred to the regions from the federal government. And, as far as I recall, the only federal aid that has been cut is the NEA/NEH grant.

You are correct, but this bill does not provide for the amount of time it would take (probably a few years at best) to get agricultural production running at full capacity in other parts of the world where "dumping" currently takes place.  I had acctually intended to mention this, but see that I neglected to do so.  Anyway, the transition would not be automatic, and many parts of the world still suffer from draughts and the like.  Some over production is always desireable, but if we are going to ween these countries into being self sufficient, we had better be prepared to teach them to do so, as farming has ground to a halt in many parts of the Third World, today.  I would propose that we devote some money into foriegn aid to teach people in other countries better farming techniques (which would not cost a lot) and give it some time before we stop the flow all together.

That is a very reasonable compromise, Mr. Secretary. I have no objection to introducing a transitional period in this bill. But eventually, I would hope that all farm subsidies, which distort the global and the local market, would be abolished.

"Give a man a fish, feed him for a day. Teach him how to fish, feed him for life." Members of the Senate, let us not toss fish to the Third World in the form of dumped agricultural products. Let us abolish farm subsidies, so that they may learn how to fish on their own.

I endorse the compromise the Secretary of the Treasury has proposed.

[Emsworth]

Part I

Section I

The total amount of funds appropriated for Federal Farm Subsidies will be cut a total of 65%, from $16.5 billion annually to $6 billion starting the next fiscal year.

a) An additional $500 million will be set aside, each year, for the next 5 years to aid in the creation of the Third World Agricultural Independence Agency. (See Section IV)

b) The remaining $6 billion will be appropriated specifically towards agricultural operations meeting the guidelines set forth in Section II.

c) $200 million (of the remaining $6 billion) will be set aside in a permanent account, each fiscal year, to aid in emergency relief for high risk crops (i.e. wheat, grain, citrus).

Section II

a) The amount of money to be spent on state aid to farms is to be capped at $6 billion annually, except in times of agricultural crisis (which must be declared as such by the Senate).

b) Farms will recieve payments based on how low the farm in question scores on the following variables;

i) Total value of farm output
ii) Size of profit made by farm (in % terms)
iii) Ratio of agricultural labourers per acre
iv) Total value of the farm, including farm buildings and equipment

These scores will be recalculated annually

c) Money is to be shared out, according to the score, between the bottom 80% (according to the scores) of farms eligable for state aid. The lower a farms score, the higher it's % subsidies will be.

Section III

Sugar subsidies are hereby abolished as of the next fiscal year.

Part II

Section IV

The Third World Agricultural Independency Agency (TWAIA) will be established with an operating budget of $500 million per year over the next 5 years. 

a) The mission of the organization will be primarily to send personnel trained in the usage of agricultural technologies and methods to Third World nations in order to teach them to self sufficient and productive in the field of agriculture.

b) The Senate will have full oversight over this organization which will be placed under the Department of the Treasury.

c) At the end of the designated 5 year period, the Senate will review the activities of the organization and the progress that has been made in Third World nations.

1) If it is determined that proper progress has not been made, the Senate is authorized to fire all standing leaders of the Agency, but must continue funding for an additional 3 years.

2) If it is determined that the agency has reached its goals, then the Senate may vote to terminate funding.

Section V

The federal government will be authorized to establish guidelines to assure the genetic diversity of domestic agriculture.

a) All seed production facilities will be required by the FDA to preserve at least 40 separate seed lines of any flora that is produced. 

b) All companies involved in the in the large scale breeding of domesticated animals used in the production of food products will be required to preserve no fewer than 20 separate and distinct genetic lines for each species of animal breed.

The question is on the passage of the above amendment. All those in favor, say Aye; those opposed, say No.

[Emsworth]

I was until now reading posts on the other half of the fantasy forum. I apologize for the delay.

The amendment has passed.

[Emsworth]

The question is on final passage. All those in favor, say Aye; those opposed, say No.

[Emsworth]

5 Ayes
0 Nays

This has passed since we're short one Senator.

Senators have 24 hours to vote or change their votes.

[Emsworth]

Sorry:

Section I

The total amount of funds appropriated for Federal Farm Subsidies will be cut a total of 65%, from $16.5 billion annually to $6 billion starting the next fiscal year.

a) An additional $500 million will be set aside, each year, for the next 5 years to aid in the creation of the Third World Agricultural Independence Agency. (See Section IV)

b) The remaining $6 billion will be appropriated specifically towards agricultural operations meeting the guidelines set forth in Section II.

c) $200 million (of the remaining $6 billion) will be set aside in a permanent account, each fiscal year, to aid in emergency relief for high risk crops (i.e. wheat, grain, citrus).

Section II

a) The amount of money to be spent on state aid to farms is to be capped at $6 billion annually, except in times of agricultural crisis (which must be declared as such by the Senate).

b) Farms will recieve payments based on how low the farm in question scores on the following variables;

i) Total value of farm output
ii) Size of profit made by farm (in % terms)
iii) Ratio of agricultural labourers per acre
iv) Total value of the farm, including farm buildings and equipment

These scores will be recalculated annually

c) Money is to be shared out, according to the score, between the bottom 80% (according to the scores) of farms eligable for state aid. The lower a farms score, the higher it's % subsidies will be.

Section III

Sugar subsidies are hereby abolished as of the next fiscal year.

Section IV

The Third World Agricultural Independency Agency (TWAIA) will be established with an operating budget of $500 million per year over the next 5 years. 

a) The mission of the organization will be primarily to send personnel trained in the usage of agricultural technologies and methods to Third World nations in order to teach them to self sufficient and productive in the field of agriculture.

b) The Senate will have full oversight over this organization which will be placed under the Department of the Treasury.

c) At the end of the designated 5 year period, the Senate will review the activities of the organization and the progress that has been made in Third World nations.

1) If it is determined that proper progress has not been made, the Senate is authorized to fire all standing leaders of the Agency, but must continue funding for an additional 3 years.

2) If it is determined that the agency has reached its goals, then the Senate may vote to terminate funding.

Section V

The federal government will be authorized to establish guidelines to assure the genetic diversity of domestic agriculture.

a) All seed production facilities will be required by the FDA to preserve at least 40 separate seed lines of any flora that is produced. 

b) All companies involved in the in the large scale breeding of domesticated animals used in the production of food products will be required to preserve no fewer than 20 separate and distinct genetic lines for each species of animal breed.

[Emsworth]

5 Ayes
0 Nays

This has passed since we're short one Senator.

Senators have 24 hours to vote or change their votes.

With six ayes, the bill is passed. I present it to President Siege40 for his signature.