A House GOP group has a plan to cut farm programs

According to the RSC, “American farmers would prosper” thanks to “growth-friendly tax reforms and deregulation measures.” The RSC makes it clear that there would be less regulation for farmers due to budget cuts at the EPA and that the end of the “Green New Deal calls to destroy agriculture as we know it” would also end.

In exchange for these growth-friendly measures, US agriculture would forego at least $90.4 billion from commodity, crop insurance and conservation programs over the next decade.

Rather than raising benchmark prices, the RSC plan would eliminate PLC and Farm Risk Cover (ARC), the main commodity title programs from the farm bill. The CBC said eliminating duplicative programs would save taxpayers more than $42.7 billion over ten years. The RSC does not specify whether any form of commodity program should replace the ARC/PLC.

On crop insurance, the RSC proposes a “modest reform” of reducing premium subsidies from 60% to 30% of premium costs and eliminating USDA payment of administrative costs to insurance companies. harvest. Also, under the RSC plan, crop insurance subsidies would only be offered to pay for catastrophic policies. “This would save taxpayers more than $32 billion over the next ten years.”

Under the Commodity Credit Corp., the RSC would require that any USDA action to use CCC funds be approved by Congress. This comes after the Trump administration used CCC funds for nearly $23 billion in aid to farmers during the trade war under the Market Facilitation Program (MFP). Republicans in Congress have criticized the Biden administration for saving $1 billion for its climate-smart commodity pilots.

“The CCC has been given vast unilateral power to purchase surplus agricultural products to manipulate market prices in an effort to obtain the same type of subsidies that the PLC and ARC obtain,” the RSC said.

So the next time pork prices crash, the USDA would need an act of Congress to step in and buy some.

The CBC also offers:

-Phasing down conservation acres, prohibiting new enrollments in the Conservation Reserve Program (CRP) and Conservation Stewardship Program (CSP), essentially phasing out the acreage of CRP and CSP over the decade. The RSC said this would save more than $11.5 billion over ten years.

– End the Conservation Technical Assistance (CTA) program, which costs about $780 million a year on 18.9 million acres: “The RSC budget would eliminate this program, which the Liberals hope to use to advance their radical climate agenda.”

-End the sugar program, which consists mainly of import restrictions and tariffs for imported sugar. Citing US sugar prices relative to the world market price, “ending the sugar program will save taxpayers $211 million over 10 years while reducing associated inflationary pressure.”

– Abandon dairy programs, noting that there are several programs that are used for dairy farms. “Eliminating federal dairy subsidy programs would save taxpayers $2.9 billion over the next decade and lower prices.”

-End of the agricultural trade promotion and facilitation program. The RSC cites around $250 million a year to commodity levy groups and private companies replicating the work of the private sector to promote trade.

– Repeal the block subsidy program for specialty crops, citing that the program provides additional subsidies to producers hand-picked by the federal government.

RSC would also like to see SNAP and other food aid programs removed from the farm bill. Instead, the RSC would like to see SNAP converted into a discretionary block grant to states. Essentially, states would run their own SNAP assistance programs. Another RSC proposal would consolidate SNAP into the Temporary Assistance for Needy Families (TANF) program.

This idea of ​​eliminating food aid programs from the Farm Bill has been floated many times in the past, but the strategy has repeatedly failed because Democratic votes are likely needed for any Farm Bill to pass.

The RSC budget plan: https://banks.house.gov/…

Chris Clayton can be reached at [email protected]

Follow him on Twitter @ChrisClaytonDTN

About Michael S. Montanez

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