Thursday, June 13, 2013

Farm Bill

Open email to Rep. (Texas) Neugebauer:

Dear Randy,
      You appear to like the proposed Farm Bill.
      Take a listen to Mark Bittman of the New York Times. He grabs a headline by saying the farm bill is like "welfare for the wealthy".
http://finance.yahoo.com/blogs/daily-ticker/farm-bill-welfare-wealthy-mark-bittman-122403588.html?vp=1
      The text of the Daily Ticker accompanying the video says the Farm Bill covers food stamps, foreign food aid, and crop insurance, but Mr. Bittman concentrates more on direct subsidies to wealthy growers [huge farms], which receive direct subsidies. You well know that direct subsidies are not necessary to ensure a continuity of agricultural produce and such subsidies should obviously not be included in any Farm Bill.
I have also previously said that food stamps are direct welfare and have no business being part of a Farm Bill. It has been said that food stamps constitute 80% of the total farm bill expenditure in the present proposal.
I also hold a similar opinion with respect to foreign food aid. As human beings, we certainly have compassion and need to help extreme cases of poverty around the world, but we cannot solve all of worlds food problems with benevolence. Again, it is welfare and should not be included in the Farm Bill. If necessary, set up a separate Welfare Bill, so that we can see how much we are spending on domestic and international welfare.
Crop insurance is also a fraud or deception. The implication is that the government is running an insurance program by which farmers may insure their crops against loss by paying an insurance premium, as is standard for any insurance operation. In fact, Wikipedia says the USDA is authorized to offer basically free catastrophic (CAT) coverage to producers who grow an insurable crop. Farmers may buy additional coverage beyond the CAT level, if they pay some premium. Crops for which CAT insurance is not available are protected under the Noninsured Assistance Program (NAP). A portion of the premium, as well as the administrative and operating expenses of the private insurance companies, is subsidized by the federal government. The Federal Crop Insurance Corporation reinsures the private insurance companies by also absorbing some of the losses of the program when indemnities exceed total premiums. Several revenue insurance products are available on major crops as a form of additional coverage.
All of this seems to me a continuing fleecing of the American taxpayer pocketbook. I strongly suggest you talk to Sen. Cruz, who seems to have a good understanding of what a practical Farm Bill should be.

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