Agriculture News from HPJ - Your Ag News Source

Thank You Red States?

President George W. Bush sure has a funny way of thanking his friends. If you take a look at the electoral college map from the November 2004 elections, you'll see a solid block of red states throughout the heartland and most of the rural areas of this great nation. George Bush undoubtedly owes his second term in no small part to the rural, agricultural vote in all of those states.

You'd think he'd want to take actions to thank rural voters, right?

Wrong!

In the last three weeks, the Administration has poked rural America in the eye not once but twice.

It all started with the president's budget proposal for 2006. The president thanked his rural supporters by proposing major cuts to agriculture programs. While many in agriculture may agree with his proposal to tighten payment limits, you could look under every rock and haystack south of the Mason Dixon line and west of the Mississippi River, and you would be hard pressed to find any farmer or rancher that supports his proposals to cut spending on direct payments, counter-cyclical payments, marketing loans and LDPs, and crop insurance.

The Bush Administration spent three years opposing emergency disaster assistance because officials claimed there was a strong-safety net to support farmers. Now, they want to cut the same programs that are supposed to provide that support?

It might make sense in Washington, but it sure doesn't make sense in farm country.

If the president's budget proposal wasn't a big enough poke in the eye, he decided to go for the knee-caps in regard to agriculture trade with Cuba.

The Treasury Department's Office of Foreign Assets Control issued a notice saying that cash must be paid in advance on any agricultural sales to Cuba. Put another way, if the Cubans can't pay cold, hard cash up front, they will not be allowed to purchase U.S. agricultural commodities.

Aren't you glad your implement dealer doesn't operate on those terms?

The Administration knows that it will be almost impossible for Cuba to make these purchases without financing them for at least a few days. In essence, they are intentionally shutting this market off from United States producers.

The press release from the Department of Treasury says this policy is being implemented because, " Economic sanctions against rogue nations - including denying them access to the U.S. financial system and hard currency - can prompt real and positive change by pressuring regimes to change behavior or policies."

Yep. It has worked real well with Cuba for the last 45 years. Think this new tightening of the policies will work any better?

After these actions by the Bush Administration, you've got to wonder what would have happened to agricultural programs if rural America had voted for Senator John Kerry. Could it have been any worse?

Date: 2/23/05


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