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government should not give agricultural

ties and other state institutions. Some of

commodities (or any good) a preferential

those projects are of use only to farmers in

advantage in world markets.

one particular region or congressional dis-

trict. CSREES's activities should be funded

Commodity Credit Corporation: Other

Programs. All of the activities of the CCC prop

directly by their intended beneficiaries, the

up the farm industry by either inflating

nation's farmers, not by taxpayers.

prices or subsidizing income. In addition, the

Economic Research Service. The Economic

CCC maintains programs that subsidize big

Research Service conducts economic and

food companies such as Kraft, gives money

other social science research on topics of rel-

to farmers to buy new technology, and subsi-

evance to the agricultural industry, including

dizes the purchase of livestock. The govern-

marketing research and supply-and-demand

ment should get out of the farming business

analysis. The American taxpayer should not

once and for all.

be forced to pay for the marketing research of

Commodity Price Supports. Almost half of all

the agricultural industry, or any other private

federal farm payments are made to the

industry.

wealthiest 7.5 percent of farmers--many of

Export Enhancement Program. The Export

whom are huge agribusinesses, such as

Enhancement Program subsidizes the export

The government

Archer Daniels Midland.63 According to the

of certain U.S. agricultural commodities,

should get out of

Department of Agriculture's own estimates,

mainly wheat and other grains, by paying U.S.

the net worth of the average farmer today is

exporters to sell their goods to foreign pur-

the farming busi-

almost twice as much as the net worth of the

chasers at a discount. The Department of

ness once and for

average U.S. family.6 4 For the rest of America,

Agriculture provides those exporters with cash

all.

bonuses to compensate them for the differ-

the net result of these huge subsidies to

ence between the selling price and their costs.

agribusiness is higher taxes and higher prices

Farm Service Agency. This agency is respon-

at the supermarket thanks to federal subsi-

sible for administering the programs of the

dies for peanuts, rice, wheat, and other com

-

Commodity Credit Corporation. The federal

modities.

government should not have such a heavy-

Conservation Reserve Program. The Conser-

handed role in the agriculture market. This

vation Reserve Program pays farmers not to

agency should be eliminated.

grow crops on their land. The stated rationale

Federal Crop Insurance Corporation. The

for CRP is to help farmers control soil erosion

Federal Crop Insurance Corporation pro-

and to reduce production of surplus com

-

vides subsidies to crop insurers and ends up

modities. However, if farmers' own planting

helping mostly the insurance companies that

decisions--often influenced heavily by large

accept the subsidies. The FCIC subsidizes up

subsidies--are causing soil erosion problems

to 25 percent of the cost of servicing crop

that inhibit their ability to profitably produce

insurance policies, and farmers are covered

crops and reduce the value of their land, those

by insurance without having to pay the entire

farmers should be responsible for taking

premium. Also, the insurance companies

actions to address the problem. The American

bear only part of the risk: the American tax-

taxpayer should not be asked to pay for the

payer bears the rest of the risk.65 The federal

federal government's misguided foray into

land management.

government should not be involved in the

insurance market.

Cooperative State Research, Education, and

Extension Service. The Cooperative State

Foreign Assistance Programs: Public Law 480.

Research, Education, and Extension Service

P.L. 480 promotes the export of U.S. agricul-

funds programs that are designed to assist

tural commodities by providing subsidized

farmers in making use of new technologies.

loans to purchasers of those goods in devel-

The CSREES also funds agricultural research

oping countries. The program also subsidizes

projects at the nation's land-grant universi-

U.S. freight carriers that carry those com

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