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Fran Smith - Ag Coalition Letter to Joint Select Committee

Fran Smith - Ag Coalition Letter to Joint Select Committee

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Washington, D.C., October 26, 2011 - In a letter sent Tuesday to the Joint Select Committee, the Competitive Enterprise Institute joined with four other nonprofit groups to urge the committee to eliminate wasteful agricultural subsidies as part of its recommendations to reduce the deficit by $1.5 trillion over the next 10 years.

The letter points out that agricultural interests get $5 billion of taxpayer dollars a year, “even when the farming industry is thriving and incomes are at a record high.” Large-scale agricultural interests shouldn’t be able to hold Congress hostage during these critical times when the national debt is $14.8 trillion and growing. “Farm programs must be on the chopping block,” the letter states.

The letter cautioned: “Reduced federal spending on agriculture programs should not come from illusory cuts that simply transition farmers into other costly programs. Further, the Joint Select Committee is not an appropriate venue to enact agriculture program reforms that fail to move in a free-market direction and continue government’s intrusive role in the marketplace, whether the programs purport to save money on paper or not.”

The five nonprofit groups signing the letter are: Americans for Tax Reform, Competitive Enterprise Institute, Citizens Against Government Waste, and National Taxpayers Union.
Washington, D.C., October 26, 2011 - In a letter sent Tuesday to the Joint Select Committee, the Competitive Enterprise Institute joined with four other nonprofit groups to urge the committee to eliminate wasteful agricultural subsidies as part of its recommendations to reduce the deficit by $1.5 trillion over the next 10 years.

The letter points out that agricultural interests get $5 billion of taxpayer dollars a year, “even when the farming industry is thriving and incomes are at a record high.” Large-scale agricultural interests shouldn’t be able to hold Congress hostage during these critical times when the national debt is $14.8 trillion and growing. “Farm programs must be on the chopping block,” the letter states.

The letter cautioned: “Reduced federal spending on agriculture programs should not come from illusory cuts that simply transition farmers into other costly programs. Further, the Joint Select Committee is not an appropriate venue to enact agriculture program reforms that fail to move in a free-market direction and continue government’s intrusive role in the marketplace, whether the programs purport to save money on paper or not.”

The five nonprofit groups signing the letter are: Americans for Tax Reform, Competitive Enterprise Institute, Citizens Against Government Waste, and National Taxpayers Union.

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Categories:Types, Letters
Published by: Competitive Enterprise Institute on Oct 26, 2011
Copyright:Attribution Non-commercial

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 October 25, 2011U.S. CongressJoint Select Committee on Deficit ReductionWashington, D.C. 20515Dear Member of the Joint Select Committee,As required by the Budget Control Act of 2011, you have been charged with issuing a formalrecommendation on how to reduce the deficit by at least $1.5 trillion over the next 10 years.While you and your colleagues continue to deliberate on deficit-cutting measures, we urge you tokeep farm programs on the table and work to eliminate wasteful and unnecessary agriculturalsubsidies. We also ask that you offer clear guidance to the House and Senate AgricultureCommittees and Appropriations Subcommittees on Agriculture in your final recommendations.The Joint Select Committee has a unique opportunity to set this nation on a course that canreverse years of damaging farm policy.Farm program proponents have long attempted to justify subsidies and other farm programs byinsisting that the agricultural community deserves special advantages. What they fail to mentionis that most farmers earn significantly more than the average American family. Foreclosure and bankruptcy rates are also very low compared to nonagricultural sectors. It is unreasonable todole out more than 5 billion taxpayer dollars through direct payments and other programs eachyear when the farming industry is thriving and incomes are at a record high.Reduced federal spending on agriculture programs should not come from illusory cuts thatsimply transition farmers into other costly programs. Further, the Joint Select Committee is notan appropriate venue to enact agriculture program reforms that fail to move in a free-marketdirection and continue government’s intrusive role in the marketplace, whether the programs purport to save money on paper or not. Our concerns include, but are not limited to,modifications to the ACRE program that will balloon its long-term cost and the inclusion of theDairy Security Act that is a continuation of failed dairy programs.The powerful agricultural lobby has held the U.S. Congress hostage for too long. With anenormous $14.8 trillion national debt that continues to grow each day, there has never been amore critical time to make real, deep and immediate budget cuts. Farm programs must beincluded on the chopping block.We would be pleased to meet with you to discuss the extensive academic research behind our recommendations. Please do not hesitate to contact Vince Smith, Visiting Scholar at theAmerican Enterprise Institute, at (406) 994-5615 or vsmith@montana.edu with any questions.

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