One politically difficult but critical role of the
President of the United States is to draw the line in budget
debates when Members of Congress buckle under constituent pressure
and attempt to open the spending floodgates. The President provides
the essential check in the legislative system, acting on behalf of
the nation to enforce budget discipline.
President George W. Bush recently played
this unenviable political role by issuing a firm veto threat
against Congress's attempts to add billions of dollars in extra
spending as a response to the September 11 attacks. By standing
firm, the President appears to have given responsible lawmakers the
support they needed to prevent understandable emotion from
overwhelming good budget sense.
Given
this example of White House firmness, it must be very confusing for
many Americans--perhaps especially World Trade Center widows and
bankrupt small businesspeople in Manhattan--that the President has
failed to show the same determination in the case of farm
subsidies. A farm bill (H.R. 2646), cynically if adroitly renamed
the Farm Security Act of 2001 to take full advantage of the
response to the September 11 attacks, would add $69 billion in
extra farm subsidy spending over the next decade compared with
current law--even though most subsidies today do not go to
low-income farmers.
If
ever there were an open-and-shut case for presidential firmness on
unnecessary spending, this farm legislation is that. But the
President in effect has merely given nuanced signals of
displeasure. Some observers surmise that, with control of the House
next year perhaps resting on the rural vote, President Bush is
under pressure to put party before country on this issue. To avoid
that presumption, he must do one simple thing--issue a clear and
unequivocal threat to veto the farm bill. He must then back that up
with strong support for lawmakers and Administration officials
trying to rein in the runaway bill and enact real reforms in
America's ruinous farm programs.
The
legislation's supporters paint a heart-rending picture of a
good-neighborly bill helping America's hardscrabble small family
farmers. Some even make the fatuous argument that the huge
bipartisan package is needed to strengthen national security in
these difficult times. But this farm legislation in reality would
be one of the worst raids on the pocketbooks of ordinary Americans
in recent years. In fact, over 80 percent of the handouts go to the
biggest landowners, who make up less than one-fourth of the
nation's farmers. Moreover, farm income appears headed to an
all-time high this year. Yet large subsidies go to household names
in Hollywood, the media, and the sports world--people not exactly
known for poverty or dedication to the land. Healthy sums also go
to many lawmakers who are eager to cast a vote for the extra
billions.
The
farm legislation Congress is so speedily considering is not
actually required until next year, when the package of agricultural
programs is due for reauthorization. But supporters of the
legislation mapped out a strategy well before September 11. This
was to be the first major reauthorization bill out of the blocks in
order to take political advantage of the then-bulging surplus.
After
the terrorist attacks, one might have thought that the farm
lobby--whose members could hardly be thought of as victims of the
assault--would be willing to curb its appetite and allow more
pressing needs to take precedence in the line to eradicate the
budget surplus. Instead, the bipartisan backers of the bill,
together with the congressional leadership, seem determined to
force the bill through Congress as quickly as possible while the
money is still there. As Senate Budget Committee Chairman Kent
Conrad (D-ND) explained with refreshing honesty, "The money is in
the budget now. If we do not use the money...it is very likely not
going to be available next year."
The
President needs to block this unseemly haste to pass a bill that is
bad policy and an outrageous giveaway. He needs to demand a careful
and measured review of America's farm programs and a final bill
that will institute real reform and restrict the handouts to the
needy.
The
last farm bill, enacted in 1996, included important reforms to
change the incentives so that farmers would grow crops in response
to market conditions rather than try to maximize their subsidies
from the taxpayer. Since then, Congress has eroded many of these
reforms. The current bill would erode them further with a 65
percent increase in subsidies from the taxpayer. The aim seems to
be to create an industry that is uniquely protected from downside
commercial risk while allowing some large landowners to receive
huge subsidies--in many cases, for literally doing nothing with
their land.
Ranking Senate Agriculture Committee member
Richard Lugar (R-IN), with the support of Agriculture Secretary Ann
Veneman, introduced legislation that would have steered the
structure of commodity support programs toward need rather than
acreage. Senator Lugar also included a form of insurance that would
encourage farmers to make sensible, more market-based decisions to
curb their own business risk. But a bipartisan collection of farm
belt members sidelined his reform proposal.
Meanwhile, the overwhelming percentage of
subsidies continues to go to the largest, and generally more
profitable, agribusinesses, not to struggling small farmers. Money
also goes to affluent "hobby" farmers who dabble in farming or who
profit from shrewd investment advice on securing the taxpayer
subsidies. For example, Portland Trailblazers basketball star
Scottie Pippen, whose salary will top $18 million this year, has
pulled in over $100,000 in subsidies over the past five years for
not growing crops on land he owns in Arkansas. Other celebrities
who have utilized the subsidies include Sam Donaldson, Ted Turner,
and David Rockefeller. Many of the Members of Congress on the farm
committees who are voting for the huge increases in subsidies also
have significant farm interests and will do very well if the
programs are expanded.
The
scale of the routine excesses in the proposed farm bill dwarfs even
the most questionable demands of New Yorkers, Washingtonians, and
Virginians hard hit on September 11. Moreover, there is nothing
temporary about the "help" being sought in the misnamed Farm
Security Act. If the President is truly determined to speak for all
Americans in these difficult times, he must send a message to
Congress that is loud and clear: Without real reforms in farm
programs and a sharp cutback in costs, this farm bill will never
become law.
Stuart M. Butler, Ph.D., is Vice
President for Domestic and Economic Policy Studies at The Heritage
Foundation.