Farm subsidies and Health Care

Earlier this year the Obama government tried to do away with farm subsidies that benefit mainly large agro-businesses. It was proposed to eliminate subsidies for farms with more than $500,000 in revenue, while payments to any single farmer would be capped at $250,000. Small farmers with up to $500,000 revenue but who don't necessarily make a profit, got in arms and the package was withdrawn by congress.

Makes me wonder, did the government not study this in detail before submitting the plan or was the plan from the start to protect your big business friends by threatening to take their subsidies away, but cave in when the small fish come up in arms?

As Albert Hunt wrote at Bloomburg.com on April 26, "The politics aren’t that simple. House Agriculture Committee Chairman Collin Peterson, a Minnesota Democrat, called the idea “stupid,” and Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, more diplomatically called it a “mistake.” Farm lobbyists complain that ending the subsidies would contribute to the volatility of food prices.

Peterson is a member of the Democratic Blue Dog caucus, which advocates budgetary moderation. Conrad is a consistent critic of chronic deficits. As another congressional leader once proclaimed, all politics is local, and cracking down on federal support for rich farmers was nixed."

In case you wondered, yes, these are the same Blue Dogs who have trouble finding the savings to pay for health care. Hmmm, wonder if they are holding any town meetings later this month.