Farm Bill is a Disgrace

As commodity prices soar along with farm incomes, Congress has passed a veto-proof farm bill that pays subsidies to millionaire landowners. The House passed the bill 318-106. The Senate passed the bill 81-15. All three of Montana’s lawmakers voted to pass the bill.

So, a person making $1.4 million per year would still be eligible for direct payments from the government.

President Bush, as promised, vetoed the bill today. Considering the margin of the vote the president’s veto is unlikely to stand. Bush sought an adjusted gross income limit of $200,000 above which farmers could not qualify for any subsidy payments. The farm bill passed by the Senate and House, however, allows farm income of up to $750,000 and non-farm income of $500,000 per individual. The $750,000 limit applies to direct payments that are disbursed based on land acreage and regardless of current market conditions or even whether the land is still actively farmed. The bill would allow a wealthy farmer to have up to $750,000 a year in farm income and $500,000 in non-farm earnings and still qualify for the full amount of fixed payments. So, a person making $1.4 million per year would still be eligible for direct payments from the government. Direct payments have totaled more than $5 billion a year since 2004.

Direct payments have totaled more than $5 billion a year since 2004.

Critics have also pointed to earmarks in the bill, including a tax break for racehorse owners added by the Senate Republican leader, Mitch McConnell, of Kentucky, and $170 million to benefit the salmon industry inserted by House Democrats from the West Coast.

The bill allows a producer to earn up to $750,000 in net farm income and still be able to get commodity payments, but farmers would see 10 percent of their direct payments cut for every $100,000 in income above that $750,000 ceiling. For married couples, the AGI limit on farm income also doubles to $1.5 million. Senate Agriculture Committee Chairman Tom Harkin said payments would end at $1.95 million income.

President Bush twice last year vetoed health care bills for struggling working families earning far less than most farmers getting subsidies. At a time of high commodity prices and food shortages, the government continues to distribute about $5.2 billion in annual direct payments to individuals regardless of personal income or current production on their farmland.