To: National Desk Contact: Sean Rushton or Melissa Naudin,
202-467-5300, both of the Council for Citizens Against
Government Waste
WASHINGTON, June 20 /U.S. Newswire/ -- The Council for
Citizens Against Government Waste (CCAGW) declared a modest
victory for taxpayers after today's 24-23 vote, in the House
Committee on Agriculture, to overrule its chairman and reduce
authorization for emergency agriculture payouts from $6.5
billion to $5.5 billion. The lower-cost package, offered by
Reps. Charles Stenholm (D-Tex.) and John Boehner (R-Ohio), won
over the objection of Chairman Larry Combest (R-Tex.).
"Numerous special interests had lobbied for months for
additional funding, and CCAGW, along with the Bush
Administration, believed the $5.5 billion more than
adequate," CCAGW President Tom Schatz said.
"According to the United States Department of
Agriculture, the addition of $5.5 billion would boost real
farm income for 2001 to $1.2 billion higher than last year.
That income level would exceed or equal five of the last seven
years, the only exceptions being the record-high income years
of 1996 and 1997. CCAGW does not believe that it should be the
taxpayers' responsibility to assure that real farm income
should always exceed the previous year."
"Further, it is premature to provide even $5.5
billion, since nobody knows with any certainty what either
crop yields or prices will be this year," Schatz added.
"At this time, frankly, there is no evidence even to
justify $5.5 billion in emergency agricultural assistance, so
this victory is only a beginning for consumers and
taxpayers."
CCAGW also applauded the committee's decision not to repeal
the current one-cent penalty for forfeiting sugar under the
price support program. In effect, eliminating the penalty
would have been a one-cent per pound price support increase
for sugar. "Repeal would not only reverse one of the few
minor reforms to sugar policy from the 1996 farm bill, it
would send a signal for more sugar production at a time when
the market is oversupplied and the government already owns
nearly 800,000 tons of surplus sugar," Schatz also
said.
The sugar program has always been a costly proposition for
U.S. consumers, costing them nearly $2 billion annually. For
years, however, sugar program defenders have claimed that the
program was a bargain because it had no taxpayer cost. They
can no longer make such a claim. Last year's sugar purchase
cost the federal government $465 million. While the U.S.
Department of Agriculture projects the program will cost
taxpayers at least $1.6 billion over the next ten years, the
cost will likely be much more. CCAGW is the lobbying arm of
Citizens Against Government Waste, the nation's largest
taxpayer advocacy group with over one million members and
supporters nationwide. It is a non-partisan, non-profit
organization dedicated to eliminating waste, fraud,
mismanagement and abuse in government. |