President Obama needs to pass a bill, but a powerful chairwoman of a Senate committee, who is in danger of not being reelected, adds a controversial and expensive provision that puts passage in jeopardy. Conventional wisdom says that the White House cuts a deal. And, unfortunately, that is exactly what happened at the end of July, when the White House told the Senate Agriculture Committee Chairwoman Blanche Lincoln (D-Ark) that they would still help her obtain $1.5 billion in farm disaster aid if she promised to remove language funding the program from a small business bill.
Government Broadband is too Broad
When Congress passed and the President signed the American Recovery and Reinvestment Act (ARRA), or the stimulus bill, in February 2009, $7.2 billion was allocated to expand broadband in the United States. Of that amount, $2.5 billion was slated to go to the Rural Utilities Service (RUS) for its Broadband Initiatives Program (BIP). This program supplements an existing RUS program aimed at underwriting broadband projects, the Rural Broadband Access Loan and Loan Guarantee Program. That program was established by Congress as part of the 2002 Farm Bill, and modified as part of the 2008 Farm Bill. Its primary goal is to provide loans to help bring Internet broadband service to unserved rural communities, which are generally defined as communities with populations of less than 20,000.
Stimulus Bill Raises Questions
As the current version of the stimulus bill awaits a Senate vote and President Obama’s signature, there are still plenty of questions and concerns about whether it will in fact stimulate the economy and create jobs. As House Minority Leader John Boehner (R-Ohio) states on his website, “We need a bill that creates jobs….” One would think that this would be the goal, except it’s not always the case with this stimulus package.
The RUS: A Fiscal Ruse
The so-called stimulus bill passed by Congress and signed by the President grows government so much it would even make FDR blush. There are countless expenditures included in the bill that have nothing to do with “fixing” the economy. One such item is $2.5 billion for broadband deployment through the Rural Utilities Service (RUS).
USDA Makes $49 Million in Payments to Ineligible Individuals
In October, the Government Accountability Office (GAO) issued a report titled “Federal Farm Programs: USDA Needs to Strengthen Controls to Prevent Payments to Individuals Who Exceed Income Eligibility Limits.” The report was requested by Senator Charles E. Grassley (R-Iowa), the ranking member of the Senate Finance Committee.
Corn Ethanol is Not a Panacea
All is not rosy with corn ethanol and other biofuels, according to a February 7 Scientific American online article. The article reported on the release of two new research studies that show that converting corn to ethanol is leading to increased clearing of the Amazon rainforest and higher costs of food. Plus, for those who argue that global warming is man-made, the researchers highlighted in the Scientific American article report that corn ethanol production may be making the situation worse.
‘F’ is for Farm Subsidy
In anticipation in the next few weeks of markup of Title I farm subsidy programs in the House Agriculture Committee, CAGW released Making the Grade: CAGW’s Report Card on Farm Bill “Reform” Proposals.