Saturday, September 26, 2020

Farmers & ranchers in the middle of a fight between Congress

For decades the Commodity Credit Corporation (CCC), with authorities granted by Congress, has provided funding to stabilize and support farm income and commodity prices through programs related to commodity and income support, conservation, export promotion, international food aid and disaster assistance, among others. Since 1987, the CCC has been replenished annually at $30 billion to fund many programs farmers rely on, such as Agriculture Risk Coverage, Price Loss Coverage, Dairy Margin Coverage, and the Conservation Reserve Program. However, this year it has yet to be replenished. The continuing resolution scheduled to be voted on in the House of Representatives this week does not include a replenishment of the Commodity Credit Corporation. According to American Farm Bureau Federation, “Because CCC funds were used to help farmers and ranchers impacted by retaliatory tariffs and COVID-19 through the Market Facilitation Program and the Coronavirus Food Assistance Program, respectively, some in Congress are considering not immediately reimbursing the CCC via the expected continuing resolution to extend government funding.” If a replenishment of CCC funds are not included in the continuing resolution, “Farm bill programs and payments expected to go out in early October would likely exhaust CCC resources by November. As a result, farm bill program payments after this point would be significantly delayed. With farm-level cash receipts at a decade-low, the lack of CCC resources would jeopardize farm income, farm profitability and conservation efforts,” according the the market report from Farm Bureau. More than 40 agriculture-related associations sent a letter to Congressional leadership requesting they replenish the funding to the Commodity Credit Corporation...MORE

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Some will view this as shoddy treatment of ag producers, others will be displeased to see ag lining up at the government trough. 

Notice the concern expressed is over the delay in funding, not whether or not the programs will be funded.

What I see is a another great example of Congress delegating away its authority. They have authorized the President, at his whim, to raise or lower tariffs. To pick winners and losers in international trade. To raise tariffs to benefit one sector of business while damaging another. In addition, they have delegated authority to the Secretary of Agriculture to design and issue subsidies to ag producers who are harmed by the tariff powers they have handed the President. That's a helluva lot of authority the Congress has delegated to the Executive. Multiply that across other programs and all the Executive Agencies and you will see the tremendous amount of power that Congress has given away to the Executive.

 

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