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Bush Vetoes Farm Bill

In what is likely to prove an academic exercise, President Bush followed through on a threat and vetoed the recently passed 2008 Farm Bill. The $307 billion bill, officially titled the "Food, Conservation, and Energy Act of 2008," extends many of the incentive and subsidy programs established in the 2002 Farm Bill in an era of rising food prices and farming incomes. The president cited both in his veto message to Congress.
At a time of high food prices and record farm income, this bill lacks program reform and fiscal discipline. It continues subsidies for the wealthy and increases farm bill spending by more than $20 billion, while using budget gimmicks to hide much of the increase. It is inconsistent with our objectives in international trade negotiations, which include securing greater market access for American farmers and ranchers. It would needlessly expand the size and scope of government. Americans sent us to Washington to achieve results and be good stewards of their hard-earned taxpayer dollars. This bill violates that fundamental commitment. [...]

At a time when net farm income is projected to increase by more than $28 billion in 1 year, the American taxpayer should not be forced to subsidize that group of farmers who have adjusted gross incomes of up to $1.5 million. When commodity prices are at record highs, it is irresponsible to increase government subsidy rates for 15 crops, subsidize additional crops, and provide payments that further distort markets.
But farm bills are politically popular, especially in election years, and this year's bill passed both Houses of Congress by veto-proof margins. Congress is expected to override the president's veto almost as soon as it receives the president's message.

The bill authorizes direct payments to farmers with incomes as high as $2.5 million. The Administration wants to limit payments to farms with non-farming incomes of less than $200,000. Congress would raise that cut off to $500,000 but would allow payments to farmers with incomes from farming activities of up to $950,000. The president also cited non-farm related spending earmarks and policy issues tucked in the legislation. Specifically he mentioned funds for water issues related to desert lakes, funds for the purchase of 400,000 acres of privately held land, a provision allowing for the non-competitive sale of public land for use by a ski resort, and expansion of the Davis-Bacon Act, a law that requires payment of prevailing wages on Federally funded construction projects.

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