The same number of farms will benefit from this as from repealing the estate tax

by Prometheus 6
April 19, 2005 - 8:35am.
on Economics

Quote of note:

"What the secretary is really saying is that the administration has backed down under pressure from members of Congress who depend on campaign contributions from big agribusiness," he said. "It was smart and courageous for the president to propose limiting payments, closing loopholes and cutting overall subsidies. His change of plans is a sad reminder of this administration's policy to leave no big business behind."

Administration officials deny that is the case.

Farm Subsidies May Not Face Limits
Lawmakers Would Have to Find Other Ways to Cut Costs

By Dan Morgan
Washington Post Staff Writer
Friday, April 15, 2005; Page A23

The Bush administration has signaled that it will not pressure Congress to enact limits on government payments to big farmers this year if lawmakers can come up with other ways to cut spending on agricultural programs by $5.4 billion.

The subsidy cuts and other proposed changes in the farm program were hailed by budget cutters, environmentalists and foreign governments when they were included in the administration's budget proposals in February. They have run into heavy resistance in some parts of the Farm Belt. Southern cotton and rice growers in the GOP's political base would be hit particularly hard.

In remarks to a Senate Appropriations subcommittee this week, Agriculture Secretary Mike Johanns acknowledged that many of the policy proposals, such as reducing the maximum payment, are "sensitive." Lawmakers, he said, "may have other proposals to achieve these savings, and we are willing to work with Congress on other recommendations."