U.S. Chamber Lauds Veto of Big Farm Subsidies

Calls Bill A Missed Opportunity for Modernizing U.S. Policy

WASHINGTON, DC-The U.S. Chamber of Commerce today applauded President Bush's veto of HR 2419, the "Food, Conservation, and Energy Act of 2008" (Farm Bill).

"With farmers enjoying record crop prices, this bill was an opportunity to modernize the U.S. farm policies and wean farmers from market-distorting subsides," said Bill Kovacs, Chamber Vice President of Environment, Technology and Regulatory Affairs. "The last thing we need with food prices increasing is to burden American taxpayers with excessive farm subsidies. This is irresponsible fiscal policy."

The current system of farm subsidies, which is determined by crop, not poverty level or need, is inequitable and inefficient, and is hampering the U.S. ability to gain greater international market access through reduced tariffs and non-tariff trade barriers. The Administration recognized these inherent deficiencies and offered a sensible, reform-based farm bill proposal that would have gradually reduced farm subsidies while encouraging a more market-oriented approach. Nevertheless, Congress rejected the Administration's proposal and decided to continue an outdated agricultural policy that is fiscally irresponsible.

"We need a modern farm bill that is fair and makes sense for all Americans and our economy," continued Kovacs.

Congress must realize that the agricultural sector of the U.S. economy has never been stronger. The farm debt-to-asset ratio is the lowest it has been in more than 45 years; farm equity has risen approximately $200 billion annually for the last five years; crop prices are at record high levels; and farm incomes are sky-rocketing. Yet, inexplicably, this bill would allow farmers to continue to receive unprecedented levels of assistance, perpetuating a fiscally unsound policy of increased price supports and trade-distorting agricultural subsidies.

The Chamber urges members of Congress to uphold President Bush's veto and reject HR 2419.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

# # #

08-138