Sunday, August 22, 2010

Louisiana agriculture poised to get major bailout bucks in subsidies

 EWG PR - GHN News Editor - While fishermen complain about
losing money and oil workers lament their losses from about 35 idle rigs
in deepwater drilling, large agriculture interests are about to get
major bucks.


Louisiana is poised to receive morethan $98 million in taxpayer dollars under a controversial disaster aid
program conceived by Senate Agriculture Committee chair Blanche Lincoln

(D-Ark.) and backed by the White House.


Lincoln’s
plan to compensate farmers for 2009 crop losses ran into trouble, and
the White House rescued it.  It also boosts Lincoln's reelection
prospects in her $1.5 billion in administrative funds to underwrite some
ideas people find controversial or unorthodox.

  An analysis by Environmental Working Group
has determined that the Lincoln plan would generate a six-figure
windfall for hundreds of plantation-scale, highly subsidized rice and
cotton farms across the South.

EWG hypothesizes that 10 Louisiana farming operations,
including Condrey Farms in Lake Providence, Schenley Farm Partnership*
in Mer Rouge, and Balmoral Farming Partnership in Newellton could rank
among the nation’s top 50 beneficiaries of the Lincoln plan. In 2009
alone, each of these farms received more $300,000 in federal subsidies.

According
to EWG’s calculations, the Lincoln plan could bestow $252,958 to
$595,958 in additional public subsidies upon these agribusiness
operators – at a time when other Louisiana business people, including
those who make a living crabbing, shrimping and fishing, are struggling
to survive in the face of BP oil spill, the worst environmental disaster
in the Gulf States’ history.

EWG’s
analysis shows that beneficiaries of the Lincoln plan would receive a
lucrative taxpayer bailout even if they incurred only minor losses.

Lincoln, who is in a tough fight for reelection, has contended there is nothing partisan or unusual about asking the administration to underwrite her disaster aid program from existing U.S. Department of Agriculture funds.

“People
can draw their own conclusions on the timing of the Lincoln bailout
plan, but the administration sure has a lot of questions to answer,”
said EWG legislative analyst, David DeGennaro. “Taxpayer dollars are a
finite resource that should be spent with caution, not tossed around to
wealthy agribusiness owners with no regard to need or circumstance,
which is exactly what Senator Lincoln is trying to do here.”

In
response, farm leaders in Congress are worried about the plan. On
August 12 Progressive Farmer Magazine reported House Agriculture
Committee Chairman Collin Peterson (D-Minn.) as telling Lincoln "he is
'not a big fan' of the low threshold for determining eligibility that
would require a farmer to have suffered only a 5 percent loss.

"Peterson
said that under Lincoln's proposal, USDA would be 'making payments to
some producers who do not need it and we will get all sorts of criticism
over it, especially when people realize producers in over half of the
counties in the United States will qualify to get a supplemental direct
payment."



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