Insiders: Most farm programs not in jeopardy
By Julie Pence, Ag Weekly correspondent
Friday, October 21, 2005 1:44 PM CDT
WASHINGTON -- Despite a federal deficit that is the third worst on record, exacerbated by Hurricane Katrina, Idaho farmers don't have to worry about trimmed farm subsidies.
At least that's the message coming from the office of Rep. Mike Simpson, R-Idaho.
Down from a record $412 billion in 2004 to $318 billion for 2005, some analysts are projecting the deficit could shoot upwards of $400 billion by the time the Gulf Coast is rebuilt. The 2004 figure represents 2.6 percent of the gross national product, which is considerably less than the deficit of the early 1980s that was equal to 6 percent of the GDP.
So far, Congress has appropriated $62 billion for hurricane relief, and that amount could top $200 billion before rebuilding is complete. In order to gain control over the deficit and also to negotiate world trade policies, President Bush has issued an edict to Congress to reduce spending in all areas, including farm programs.
So Simpson, along with Sen. Larry Craig, R-Idaho, who both serve on congressional appropriations committees, as a matter of course are taking a look at farm subsidies, said Craig's spokesman Dan Whiting. Two-thirds of the national budget consists of entitlement programs such as Social Security and crop support programs, said John Revere, Simpson's chief of staff,
"Everything is on the table," Revere said.
Nonetheless, "that doesn't mean there will be any reduction in crop programs," he added.
Simpson and Craig, as well as Sen. Mike Crapo, R-Idaho, do have one program they intend to target for cuts: dairy subsidies that tend to reward dairy farmers owning small herds. On Wednesday, Crapo -- who is a member of the Senate Agriculture Committee -- offered an amendment to reallocate nearly $1 billion dedicated to the MILC program to restore proposed funding to conservation, commodity and research programs.
Idaho's congressional delegation opposes extending the MILC program because it interferes with the free-market system, they say.
The Idaho Dairymen's Association -- of which half its members are owners of small herds of 120 dairy cows or fewer -- has traditionally supported the notion of eliminating the MILC program, said executive director Bob Naerebout.
"It's not a matter of big herd versus small herd, as far as we are concerned," Naerebout said. "It's a matter of allowing the free-market system to work."
The association does not take a stand on any of the other farm-support programs, he said.
Revere said the coalition of senators and representatives from farm states across the nation in support of the seven major crop programs is so strong he doesn't expect any changes to farm subsidies in the near future, despite the edict coming from the Bush administration.
"As long as they stick together, those price supports should be OK," Revere said.
In addition, Revere pointed out, "The complicating factor when looking at the farm programs is that farmers are already hurting from high fuel and gas prices."
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