USDA released its proposals for the 2007 Farm Bill last week.  It is important to remember that these proposals are just that, proposals.  While Congress will look at recommendations from a wide range of outside sources, the Farm Bill will be written by the House and Senate Agriculture Committees.

I believe that the current Farm Bill has worked very well for American agriculture and has saved taxpayers’ money.  According to the Congressional Budget Office, the total costs for the commodity programs over the life of the bill are expected to come in $25 billion less than originally projected.  Given these successes, major changes are not necessary, and the 2002 bill should serve as solid blueprint for the 2007 version.    Therefore, I plan to take a very close look at some of the changes USDA has proposed to determine if these proposals are in the best interests of 19th District producers.

Included in the proposals are reductions in loan rates, changes to payment limitations, and a switch to revenue-based counter cyclical payments.  Considering that the counter cyclical payment has proven to be one of the bright spots of the current bill, I am concerned that the net effect of changing these programs could adversely affect the ability of farmers in the 19th District to compete and remain efficient.

There are, however, a few recommendations that look promising.  USDA’s supplemental insurance coverage proposal closely mirrors my legislation to provide a better crop insurance tool for producers.  Other positive proposals include an increased emphasis on renewable fuels such as ethanol produced from biomass, and an increase in direct payments for commodities, like cotton, that could help level the playing field when it comes to global trade.  I look forward to meeting with farmers and producer groups in the district to get their feedback on these proposals and their input on what the 2007 Farm Bill should look like.

President Bush Releases His Budget Proposal

As I mentioned last week, the enactment of smart economic policies has helped us reach the goal of cutting the deficit in half two years ahead of schedule.  Looking to build on that momentum, President Bush has released his budget proposal for next year, and he has set the goal of completely eliminating the deficit without raising taxes.  To reach this goal, we will need to continue to rein in spending and keep tax relief policies in place that help grow the economy.  It is my hope that we can once again reach our deficit reduction goal ahead of schedule.  Like any balanced budget plan, this one will require that tough choices be made.  However, we cannot avoid these choices by passing the buck to future generations. 

Latest From the Newsroom…

Click on the following links to read my latest news releases:

Official Statement on USDA's Farm Bill Recommendations
Official Statement on President's Budget Proposal

--Randy