CHENANGO COUNTY – President George W. Bush vetoed the long-overdue 2007 Farm Bill Wednesday, calling the $300 billion program fiscally irresponsible and unnecessarily “bloated” with subsidies for wealthy farmers.
With veto-proof majorities, Congress overid the President’s attempted block Wednesday.
For Chenango County dairy farmers, who produce 270 million pounds of milk annually, the bill increases the Milk Income Loss Contract (MILC) repayment from 34 to 45 percent when prices fall below a target price of $16.94 per hundred pounds. The bill also allows that target price to be adjusted to reflect the rising costs of feed and fuel, which went up 8.9 and 7.9 percent as early as 2006. For example, when the 2007 Farm Bill becomes law, the target price in May would be $19.13, instead of $16.94, according to supporter Senator Charles Schumer (D-NY).
The bill includes over $1 billion in funding for research, pest and disease control and general assistance for fruit, vegetable and specialty crop growers.
Sherburne dairy farmer Peter Lathrop supports the MILC initiatives, and considering milk prices in the Northeast are based on a complicated federal pricing system, he currently believes it’s still the best way to ensure dairy farms get a fair price. He also believes that adding a feed-cost adjuster is a step in the right direction, but he questions how far enough this farm bill goes.
“It sounds like they’re doing just enough to cover it, but that’s barely all it would do,” said Lathrop. “The price of commodities has gone up so much – the $17 it’s set at now is covering the basics. I think they’re behind the ball already.”
“There’s a cost of living adjustment figured into everyone else’s salaries,” Lathrop added, “why not farmers’?”
Schumer admits the bill isn’t perfect, but said it’s still a giant leap forward for dairy, fruit and vegetable farmers in upstate New York, compared to years past when the massive farm bill focused solely on the midwest and western crop growers.
“This isn’t a perfect bill,” said Schumer during a conference call with reporters Wednesday afternoon, just a few minutes after President Bush issued his 10th veto. “I would have cut (subsidies to wealthy farms) back more ... But still, the vast majority of assistance goes to middle class farmers.”
Schumer said he introduced amendments to cut funding for already wealthy farms that were defeated.
“This bill is a huge win for New York State’s farmers, as they struggle with the now staggering cost of feed and fuel,” he said. “It has two solid provisions that will give the twin pillars of New York’s farm community – dairy farmers and specialty-crop farmers – a much-needed shot in the arm.”
In the Southern Tier region, there are 191 orchards growing fruits, 245 farms growing vegetables, and over 90,000 milk cows producing 1.5 billion pounds of milk – all of which generate over $384 million worth of cash receipts each year.
In Chenango County, there are 20 farms working 75 acres of orchards and 35 farms working 195 acres of vegetables, according to figures from the U.S. Department of Agriculture provided by Schumer.
Besides earmarking money for rich farms and pet projects, critics of the farm bill argue that Congress uses budget gimmicks such as timing shifts of payments and forcing some businesses to pay their taxes early to help cover what they estimate is $20 billion in extra spending in this bill. Congress claims it’s only $10 billion in spending.
“For a year and a half, I have consistently asked that the Congress pass a good farm bill that I can sign,” stated President Bush in an address to Congress following the veto. “Regrettably, the Congress has failed to do so. At a time of high food prices and record farm income, this bill lacks program reform and fiscal discipline.”
America’s net farm income is projected to be $92.3 billion this year – 51 percent greater than the 10-year average, Bush argues.
His administration also pointed out several earmarks, such as $175 million to address water issues for desert lakes; $250 million for a 400,000-acre land purchase from a private owner; funding and authority for the noncompetitive sale of National Forest land to a ski resort; and $382 million earmarked for a specific watershed, as examples of the wasted tax payer dollars.
The bill also offers subsidies to farm couples making up to $1.5 million annually.
Despite the debate from subsidies and earmarks, domestic nutrition programs make up the largest portion of the estimated $300 billion farm bill, The Associated Press reports. Crop subsidies make up roughly 14 percent, foreign food aid less than 1 percent.