FOR IMMEDIATE RELEASE
September 10, 2002
| Washington, D. C. – Some have suggested that the
savings from this year's below-normal farm payments (these payments are
below normal because of the lack of production caused by the drought) be
used to pay for drought aid. There are several reasons why this is not
only a bad idea for farmers and ranchers, but impossible under current
law:
• Under this proposal, farmers and ranchers would be forced to wait until next September to receive these payments, at which time many would have already sold their cattle or their farms. • Additionally, if the savings were not adequate to cover the magnitude of the disaster (and it appears this year's savings will be inadequate) farmers and ranchers will only receive pennies on the dollar for their actual losses. • Drought aid should be treated as any other natural disaster aid would, and that means not being forced to find offsets and savings to provide assistance. Victims of hurricanes and earthquakes would not be forced to find budget savings before they could receive assistance. • Furthermore, the Congressional Budget Office (CBO) says that this year's savings cannot be spent on other programs. These savings must be used for years in which farm payments will be higher than expected. • Farm Bill funding is premised on 10-year spending – just because the government may not use all of the funds expected in one year does not mean that added funds will not be required in other years.
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