Act Now to: Close the Millionaire Corporate Farm Subsidy Loophole
If
you care about family farmers having equal access to opportunities and
the land you need to act in the next 48 hours. The USDA is taking
comments on the farm payment limitation rule until the end of Monday,
April 6, 2009, so send yours in now (a sample letter is provided below
or here on our website).
In his (non)state of the union speech,
President Obama courageously brought up one of the most contentious
issues from the 2008 Farm Bill debate when he called for ending "direct
payments to large agribusinesses that don't need them."
As part
of his 2010 budget, the President proposed phasing-out direct payments
in an attempt to save $9.8 billion over 10 years. Currently direct
payments, which total $5.2 billion a year, are paid regardless of crop
prices and are not tied to need.
This means: Even in times of high commodity prices, corporate farmers still get a paycheck from the government
Today’s
current subsidy system allows large corporate farms to take advantage
of subsidy loopholes that place independent family farmers at a serious
competitive disadvantage.
Because of loosely written management
and labor requirements in the Farm Bill, corporate farmers are allowed
to use multiple partnerships, passive investors and sham “paper” farms
to funnel huge multimillion dollar annual subsidy payments to corporate
entities that don’t do any real work on the farm, but use the ownership
as an entitlement to bilk payments from the government.
As a
result, giant corporate millionaire “farmers” are driving independent
family farmers off the land, using their ill-gotten gains, supplied
courtesy of taxpayers, to outbid small, midsized and new farmers who
want to buy or rent new crop ground.
Please act now to help end the corporate farm bailout.
Best,
Dave
COMMENTS MUST BE RECEIVED BY THE CLOSE OF BUSINESS APRIL 6, 2009
Send an email to Dan McGlynn at the USDA: dan.mcglynn@wdc.usda.gov
Sample Letter – (Please cut and paste)
Mr. Dan McGlynn
FSA-USDA
Stop 0517, Room 4754
1400 Independence Ave. SW
Washington, DC 20250-0517
Emailed to: Dan.McGlynn@wdc.usda.gov
or FAX to: 202-690-2130
RE: Comment on Farm Program Payment Limitation Rule, Federal Register, Vol. 74, No. 23, February 5, 2009
Dear Mr. McGlynn,
I
appreciate President Obama’s courageous call for subsidy reform and
stand firmly behind his decision to end "direct payments to large
agribusinesses that don't need them." By reforming the rules on subsidy
payments to farmers, this Administration can finally create a level
playing field for independent family farmers that allows them to
thrive, and grows opportunities for rural America and midsized farms.
In
order to do this, I encourage the USDA to close the biggest payment
loophole available under the current rules by providing a strong and
effective definition for those “actively engaged in agriculture”.
Currently,
wealthy corporate “partners” with minimal management involvement, in
some cases, as little as two conference calls per year can qualify for
payments. I urge you to correct this problem.
For those who
qualify solely by providing active personal management and no personal
labor, the rule should require that person to:
1. Provide at least half of the total management required to run the farm; or
2. Provide at least half of the total management that would be
necessary to conduct a farming operation commensurate in size with
his/her requisite share of the operation.
Closing the “actively
engaged in farming” management loophole will strengthen family farms
and rural communities and help restore integrity to a program which is
rife with abuse.
Sadly, for decades, both Republican and
Democratic Administrations have allowed this abuse to continue. This
Administration, which campaigned on commodity program payment reform,
needs to end business as usual, clean up the system, and restore good
government. Enacting a quantifiable test for farm management is the
best place to start.
Sincerely,
[Your name & city here]
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