Millions In Subsidies For Profitable Corn?
Taxpayers Spend $2 Billion On Automatic Payments To Farmers, Whether They're Needed Or Not
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Play CBS Video Video Feds Subsidize Profitable Corn Corn is in demand, not only as food, but as fuel, and corn farmers are making sky-high profits. So why is the U.S. government subsidizing them with public tax dollars? Chip Reid reports.
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(AP)
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"It's a good year," said McCauley, "we have good yields good prices"
Two years ago, corn was about $2 a bushel. This year it briefly soared above $4 and is still sky high, over $3 a bushel, which means the corn on a 3,000-acre farm like McCauley's is worth about $450,000 more now than two years ago.
The price is so high because corn is hot, not only as food, but as fuel.
McCauley sends all his corn to the local ethanol plant, where it's turned into fuel for cars as part of a massive federal effort to reduce U.S. dependence on foreign oil.
Even dried-out corn is money in the bank for a farmer who sells it to an ethanol plant.
But what really has critics angry is that corn farmers are also still getting automatic subsidy payments from the federal government. Many get tens of thousands of dollars every year whether they need it or not.
The total cost to taxpayers is $2 billion a year.
Rep. Ron Kind says it's outrageous, and he's fighting to stop the payments. Many farmers, he says, are embarrassed to take the money
"A lot of my farm families and neighbors come up to me and say, 'Why are we getting these payments when prices are so good?' And I say, 'You're right, this is crazy.'"
But the corn payments live on because many members of congress insist they're still needed as a safety net.
Sen. Sam Brownback, who grew up on a Kansas farm, is one of them.
A lot of my farm families and neighbors come up to me and say, 'Why are we getting these payments when prices are so good?' And I say, 'You're right, this is crazy.'
Rep. Ron Kind, D-Wisc.Brownback supports gradually moving toward a system where farmers get federal payments only when they need them, and Ken McCauley agrees.
"You'd be targeting the person who actually need the support," said McCauley.
But no one expects those tax dollars to stop flowing anytime soon.
Chip Reid © MMVII, CBS Interactive Inc. All Rights Reserved.
- IS RUDY GIULIANI AL QAEDA?
How much exactly would it cost to get Rudy Giuliani to holster his overdone 9/11 sanctimony? The government for the tiny Persian Gulf nation of Qatar might have a good idea. Following earlier reports that Giuliani was still getting paid by a consulting firm he created, Giuliani Partners LLC, Mary Jacoby of the Wall Street Journal sheds light on some potentially problematic sources of Giuliani''s private income. Chief among them is Qatar, the U.S. ally that paid Giuliani Partners for "security advice" regarding their petroleum facilities. The article uncovers a "potential political pitfall" for Giuliani''s candidacy and image given Qatar''s poor record in fighting Al Qaeda, and addresses aspects of the business arrangement that could dog Giuliani during his quest for the presidency. Specifically, the ostensible chief consumer of Giuliani''s security advice in this case would be Qatar''s Internal Security Ministry, currently headed by a known Al Qaeda associate. As reported earlier this year, Qatar Interior Minister Abdullah bin Khalid Al-Thani has long had ties to top Al Qaeda operatives including Osama Bin Laden, and is believed by many U.S. officials to have personally arranged the narrow escape of Al Qaeda big-wig Khalid Sheikh Mohammed from U.S. agents in 1996, thereby ensuring his freedom to mastermind the 9/11 attacks. Giuliani has refused to release specifics of the case, and to-date remains on the firm''s payroll. - Reply to this comment
- HOPE FOR AMERICA: PRESIDENT RON PAUL
-- No more meddling in other country''s political affairs
-- No more aggressive military actions overseas
-- No more torture prisons
-- No more pseudo-wars like the "War on Drugs"
-- No more IRS and unconstitutional income taxes
-- No more Federal Reserve (the group of private banks which owns our government)
-- No more erosion of Social Security to pay for militarization
-- No more U.N. (one world government) participation
-- No more NAFTA, CAFTA, WTO or GATT (globalist trade cartels)
-- No more North American Union (loss of U.S. sovereignty)
-- No more federal gun control laws
-- No more illegal aliens pouring-in over our country''s borders
-- No more illegal aliens allowed to roam freely in our streets
-- No more national ID cards (Real ID Act)
-- No more government invasion of your privacy
-- No more federal Laws which force you to take unwanted injections
-- No more federal Laws which are not authorized by The Constitution
-- No more federal erosion of State sovereignty
-- No more unlimited federal government
They don''t call him "Dr. No" for no reason. The Doctor is in! Find-out what CBS hides from you, and join us in this 21st Century political revolution at ronpaul2008.com
"Those who expect to reap the blessing of freedom must undergo the fatigue of supporting it."
- Thomas Paine
"Ron Paul doesn''t represent your Father''s school of political thought. He represents your Founding Fathers."
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- THEY DON''T CALL HIM "DOCTOR NO" FOR NO REASON
Congressman, Paul never votes for any Bill which he feels is not authorized by The Constitution, regardless of what it might be named. He feels most Laws should be made at the local or State level: the way our Founders intended. We are a Republic, and we have plenty of State lawmakers who are more than willing to make Laws which best serve their constituents. "Ron Paul is one of the easiest people in Congress to work with, because he bases his positions on the merits of issues," says Barney Frank, who has worked with Paul on efforts to ease the regulation of gambling and medical marijuana. "He is independent, but not ornery." Paul has made a habit of objecting to things that no one else objects to. In 2001, he was one of only three House Republicans to vote against the USA Patriot Act. He was the sole House member of either party to vote against the Financial Antiterrorism Act. In 1999, he was the only naysayer in a vote in favor of casting a medal to honor Rosa Parks. Nothing against Rosa Parks. Paul also voted against similar medals for Reagan and Pope John Paul II. He did, however, offer $100 of his own money to help pay for Reagan''s medal, and invited others in Congress to match his offer, but not one Member took him-up on it. Instead, Congress spent YOUR money. He not only routinely opposes resolutions that are unconstitutional, he votes against Bills which presume to advise foreign governments how to run their affairs. - Reply to this comment
- RON PAUL TAKES-ON FEDERAL RESERVE CHAIRMAN
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Chairman, Congressman Ron Paul on November 8th, and had to face some tough criticism concerning the fact that the Fed has been increasing the money supply while at the same time refusing to raise the Prime Interest Rate in order to curb inflation and devaluation of the Dollar. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset." - Reply to this comment
- RON PAUL IS THE TAXPAYER''S BEST FRIEND
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org - Reply to this comment
- RON PAUL RESISTS SPECIAL INTEREST
In Congress, Ron Paul is not only known for his lack of ego (a rare quality in D.C.), he''s widely admired for his resistance to the influence of special interest groups. Again. They don''t call him "Dr. No" for no reason. He consistanly votes against pork-barrel spending. In a rice-growing, cattle-ranching district, Paul consistently votes against farm subsidies. In the very district where, in 1900, a storm destroyed the city of Galveston, and where repairs and refugees from Hurricane Katrina continue to exact their toll, he votes against FEMA (the poster child for inept agencies) and flood aid. In a district that is home to thousands of employees of the Johnson Space Center, he votes against financing NASA. Nothwithstanding this, his constituants in the 14th District of Texas continue to re-relect him. Why? You ask? I think one voter I talked to there summarized it nicely when she said, "We may not like his vote. But we trust his heart." Even Tim Delaney, the editorial-page editor of The Victoria Advocate, an influential newspaper in the district, which has generally opposed Paul, on the grounds that a lone wolf cannot get the homeland-security financing he says the district needs, said, "Ron Paul is a very charismatic person. He has charm. He does not alter his position ever. His ideals are high. If a little old man calls up from the farm and says, I need a wheelchair, he''ll get the *** wheelchair for him. Ron Paul is a man of integrity." - Reply to this comment
- COULDN''T VOTE FOR A REPUBLICAN? REALLY?
Everytime I hear Democrats say "I hate the Republican Party. Look at what Bush has done.," I can''t help but think about all of Bush''s Democratic enablers in the Congress like Clinton, Obama, Pelosi, et. al. who made all of his dastardly deeds possible. They handed him every bit of legislation with which he has used to make himself the virtual dictator he now is on a silver platter. The Democrats in Congress don''t even seem to express any interest in investigating Bush for the crimes he and Cheney have surely committed against our country even though a vast majority of Americans think they should. What cowards! In fact, Obama and Clinton even voted in favor of legislation which actually allows Bush to pre-pardon himself and his administration for crimes dating all the way back to 9/11. What''s up with that? Look. Do yourself and your country a favor. Focus on the candidate, and the ideas and positions he or she represents, and then study the candidate''s track record of performance with respect to those positions. That''s all that really matters in the end. Elections are not a contest of two teams. Ultimately, It''s the politician who will either serve your interests or betray them while in office--not their party. Finally, Democrats, I ask you this: Would you have voted for Steven Douglas (a Democrat), who was ardently pro-slavery, against Abraham Lincoln (a Republican) simply because Douglas was a Democrat? I think most of you would. - Reply to this comment
- ONLY RON PAUL CAN BEAT CLINTON
Zogby''s Director of Communications Fritz Wenzel said on November 20 that Paul is the strongest of the GOP candidates to run against Clinton. "Among the larger universe of voters," which includes all parties, "yes, Paul would be a much stronger candidate than any of the other three [Romney, Giuliani, Thompson]," Wenzel said. Zogby recently announced that Paul was their winner in a nationwide blind-bio poll which included voters from all parties. "He is anti-war and the majority of Democrats are anti-war, he has some other ideas and policies and stances on issues more attractive to Democrats, particularly conservative Democrats," said Wenzel. "Even among Independents, he is far and away a more attractive candidate," he added. Paul is the only GOP candidate who is not threatening war with Iran, whereas Clinton vowed to keep that option "on the table." Paul also voted against the war in Iraq, which Clinton has supported. Because Democrats outnumber Republicans, none of the other GOP candidates can win against Clinton, because they simply won''t be able to reach across party lines and attract enough Democratic and Independent voters to beat Clinton. Only Paul can do that. "He''s right on schedule," Wenzel said. "He''s making all the right moves, going in the right direction...at a time when other candidates are not moving." Wenzel based his analysis on recent polls that show Paul could win in New Hampshire and that his support nationwide is intensifying. - Reply to this comment
- RON PAUL WINS BIG IN NATIONAL POLL
The results of a nationwide telephone poll, announced by Zogby on November 19th, reveals that Americans want to vote for a candidate who protects liberty; who wants to shrink government; and who wants to immediately withdraw our troops from Iraq - positions of Congressman Ron Paul. As part of a blind-bio, spread poll, likely voters (from all parties) were provided with descriptions of four different Republican candidates and asked to choose who they would vote for based on each one''s resume and political platform. 33% of pollees chose Ron Paul, 19% chose Rudy Giuliani, 15% chose Mitt Romney and 13% chose Fred Thompson. The results clearly illustrate that the country is crying out for Ron Paul, which is why mainstream media has launched a public relations offensive to marginalize his accomplishments and suppress the Congressman''s name recognition. In a seperate question, over 49% of pollees said they would be more likely to vote for a candidate who would begin an immediate withdrawal from Iraq. In fact, Ron Paul won in every demographic of this poll including, but not limited to, religious voters, NASCAR fans, military families, African-Americans, etc.. - Reply to this comment
- WERE HAVING A TEA PARTY! YOU''RE INVITED
As we all know, freedom isn''t free in this country. Therefore, in the wake of our successful fundraising event of November 5th, in which we all came together to raise $4.2 million dollars for Ron Paul''s campaign, we''ve set yet another date for an even bigger fundraiser. This one will take place on December 16th: a very important date for people who love freedom and hate tyranny to ring the Liberty Bell, and let our sold-out, globalist, political ****** and their mainstream media enablers know that good Americans are mad as hell, and that we''re not going to take it anymore. December 16th is the 224th aniversary of The Boston Tea Party: an act of protest by the American colonists against the tyranny of Great Britain where the Sons of Liberty boarded British ships and dumped crates of tea overboard into Boston Harbor. It was a key event which helped to spark the American Revolution, and we hope this event will, likewise, add additional spark to our own 21st Century political revolution to restore peace, prosperity and freedom to our Republic by helping elect a President whose record of adherance to The Constitution is unmatched by anyone in American politics. Please join us this December 16th for the largest one-day political donation event in history. Our goal is to bring together 100,000 people to donate $100 each, creating a one day donation total of $10,000,000. The time to act is now. The time for Ron Paul is NOW! TeaParty07.com - Reply to this comment
- I wonder which Of Bush''s buddies got the contract for disbursement of these payments at ten times the normal federal rate?
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'' .. math sucks not for mathematicians shoot birds and build airplanes, but answers are not looked up and dialed in as are phone #s .. ''
'' .. happiness is a penny from each of 32 with empty shelves & pockets to purchase from one with full shelves & pockets a loaf sliced 34 ways, at least in some porns happiness is such .. ''
'' .. to use market share to raise armys to make folk pay for lunch is to pay for lunch while enemys raise armys to make folk pay for lunch .. ''
'' .. they were nice, said don''t kill and feed the world, gave me oatmeal oatmeal pies green beens word puzzles, i hung their pictures on my walls, my heart snared to do so, but they betrayed me, as do those obsessed with don''t kill / feed the world, they killed and they taxed the world, i found refuge with their enemys, and more with enemys enemys (also their enemys), for enemys enemys built for them great bouquets in retalition for the hate of their great bouquets given to those that love such bouquets, when my flowers asked why i hung their pictures on my walls, i remembered it was not my hate what drove me so but my love, i found it was not them i loved: they were few cuttings in a endless buffet, and it was the buffets i truly loved, and not the cuttings what had lead me to the buffets, it was not the betrayal i hated, but rather the pictures on my walls that could never be replaced, so eternity asked of me, which came first: eternity or you? .. ''- Reply to this comment
- ttinsly,
Well said. I am getting very tired of people whining about socialism and free markets and no bailouts and no universal healthcare at the same time they support the above and other handouts to rich people. - Reply to this comment
- nonyabiz2,
Yadda Yadda Yadda. Everything you just said is SOCIALISM, plain and simple. Where is the free market part of what you just said? As long as the handouts are going to you it can easily be explained. Most farmers that get these subsidies are massive corporations that have the funds already to make the investments. Then, you have rich people who buy cheap farms and do not really tend to them that get farming subsidies for just living on a farm! Ridiculous! - Reply to this comment
- Pork spending like this really does need to end.
- Reply to this comment
- It''s called ''welfare for cold-warriors''
Farmers and defense workers are some of the most reliant republican voters out there, constantly voting to keep Republicans in office.
Republicans respond by cash-cowing both farmers and defense industries, as well as cutting taxes on the rich, their other major supporters.
Lesson: If you vote Republican you''ll pay lower taxes and get government welfare, even when you don''t need it. Otherwise, its the shaft of YOU! - Reply to this comment
- What they are failing to point out is that farm commodity prices have not kept up with inflation for over 20 years. Case in point- my family used to farm Alfalfa. Back in 1981 they were getting $80/ton for good hay. Jump forward to 2000 and they were getting $90/ton, despite the fact that on average the rate of inflation is 3% per year.
But our true rate of inflation is nowhere near 3% now, despite what they tell you on the evening news.
These subsidies go to offset the investment costs necessary to ramp up corn production for energy uses where investment capital is not available in the private sector. More corn? New $50k center pivot system, new pump. New set of hired help. More fertilizer needed. More to harvest, so $200k harvester. $450k goes away quickly when you start to realize the investment (and risk, where no bank will loan to a farmer for less than 4% over prime) that goes into the farm.
There is a reason why farms are collapsing, people, even during good times. It''s because it''s becoming economically, environmentally (in the political sense, not actual), and logistically impossible to operate a farm in the United States. And when you take away subsidies then be prepared to get more food contaminiation scares from other countries like Mexico. - Reply to this comment
- So when you city folk think its funny to tease and make fun of farmers, well, since its coming out of your pockets try to remember the old saying, "he that laughs last, laughs best."
Posted by Spectrum108
Except most of the money isn''t going to small family farms but to corporate owned subsides. Oh well, Haliburton, Betchel and Blackwater take our money and laugh at foolish taxpayer too. - Reply to this comment
- curse914 wrote.."Have you heard of the concept of Taker States?"
The idea that states with few people and a large area must have federal help with transportation and communication needs is rational.
However, many Senators from sparsely populated states withhold their votes for projects beneficial to large numbers of people until pet pork projects are funded. The famous Alaskan "Bridge To Nowhere" is a classic example. I have no idea how to stop these practices. Robert Byrd and Trent Lott, for example, have brought home huge sums of federal money for their states. The voters love tham for it. We need Jimminy Cricket. Lawmakers without consciences can make life miserable for taxpayers. By the way, I live in a large state with a population smaller than a NYC borough. - Reply to this comment
- curse914--I''m thinking my info came from--I think-- A HISTORY OF THE INCOME TAX...but I''m not sure if it was that or something else I was reading at the same time...casting about for the volume now...
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