Southern lawmakers fight to keep payments to cotton, peanut farmers
Southern lawmakers are pushing back against a proposal in President Barack Obama's budget that ends compensation to cotton and peanut farmers for storage costs when they hold back on selling crops until they can net better market rates.
"The credits allow producers to store their cotton and peanuts at the government's cost until prices rise. Therefore, storage credits have a negative impact on the amount of commodities on the market," said a White House Office of Management and Budget analysis released earlier this month.
"Because storage is covered by the government, producers may store their commodities for longer than necessary," according to the analysis. "There is no reason the government should be paying for the storage of cotton or peanuts, particularly since it does not provide this assistance for other commodities."
Cotton and peanuts — crops that contribute heavily to the Southern economy — are the only commodities that receive such subsidies. Southern lawmakers have long sought to insert the subsidies into federal farm bills, with mixed results.
Storage compensation to cotton and peanut farmers was negotiated as part of the 2008 farm bill.
READ MORE AT LINK
"The credits allow producers to store their cotton and peanuts at the government's cost until prices rise. Therefore, storage credits have a negative impact on the amount of commodities on the market," said a White House Office of Management and Budget analysis released earlier this month.
"Because storage is covered by the government, producers may store their commodities for longer than necessary," according to the analysis. "There is no reason the government should be paying for the storage of cotton or peanuts, particularly since it does not provide this assistance for other commodities."
Cotton and peanuts — crops that contribute heavily to the Southern economy — are the only commodities that receive such subsidies. Southern lawmakers have long sought to insert the subsidies into federal farm bills, with mixed results.
Storage compensation to cotton and peanut farmers was negotiated as part of the 2008 farm bill.
READ MORE AT LINK
-
- groups:
- Community, US Politics, US Congress Watch
