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Stock Option Trading The two most substantial reforms of the 1990s occurred in the same year -- 1996. In both cases, lawmakers made the bold move to make much-needed reforms to flawed programs.

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Currency Day Trading The first was welfare reform. Few would argue that welfare reform has not been a resounding success -- caseloads are down 50 percent, and the naysayers who predicted endless poverty were wrong. This year's welfare reauthorization will be somewhat contentious, but the principles of the 1996 bill -- time limits on benefits and work requirements for welfare recipients -- will remain intact.

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Financial Software Trading The second substantial reform of the '90s was the 1996 farm legislation. Congress took a historic step to rein in federal agricultural subsidies with the "Freedom to Farm Act." Farmers who plant row crops -- corn, rice, wheat, cotton, soybeans, sorghum, barley and oats -- were supposed to be free from government intervention that stipulated how much they could produce. In return, government subsidies to farmers would be gradually phased out, making farming subject to the free-market system.

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Online Stock Trading Company Unfortunately, the future of this common-sense program does not look as bright as the future of welfare reform, because Congress is on the verge of turning back the clock 50 years in federal farm policy.

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Forex Day Trading It will vote soon on legislation -- the 2002 Farm Bill -- that would dramatically alter our federal farm programs. Under the legislation, farmers would continue to have the flexibility to plant what they choose, but generous farm subsidies would be tied to production.

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Financial In Market Over the past few years, current subsidy levels have led to overproduction and lower prices, and now more than 40 percent of net farm income comes from the federal government. Increasing government subsidies would only perpetuate this self-defeating cycle.

Stock Trading System Under the legislation now before Congress, subsidies for program crops would be expanded and new commodities added. And the free market would be abandoned, causing farmers to be more and more dependent on the federal government.

Day Trading Stock Tip These new and expanded programs represent a 76 percent increase in agriculture spending. Such a dramatic increase during a time of war and mounting budget deficits is unprecedented and irresponsible. These estimates assume price increases among certain commodities -- assessments with which few independent agricultural economists agree. If these estimates are wrong -- as is often the case -- the bill could cost taxpayers $10 billion to $20 billion more than projected.

Financial Forex Forex Software Moreover, the farm bill violates our trade commitments. U.S. trade agreements limit the domestic farm supports most likely to distort production and trade to no more than $19.1 billion per year. There is little doubt that under this bill we will exceed these limits. Because 96 percent of the world's consumers live outside the United States, agricultural trade is vital for our farmers. But this bill will surely spur our partners to retaliate. For proof, just look at how some of our trading partners are reacting to the new steel tariffs.

Stock Market Trading For many farms, the government has become the primary stakeholder in the farmer's business. Indeed, without the federal government it's likely that many of these farms would go out of business. Many more farms, however, would hardly feel the pinch of declining federal subsidies, because farming would undoubtedly continue without the largess. Indeed, the majority of America's farms endure without federal money. California is our largest agricultural producer, yet only 9 percent of its farms receive subsidies. Iowa, which produces the traditional program crops, receives three times as much money.

Day Lesson Stock Tip Trading The most likely scenario is that in two years we will be overwhelmed by surplus agricultural production, low commodity prices and excessive government payments. We will have lost cases before the World Trade Organization, and government outlays will exceed budget limits. We will be forced to cut benefits or rewrite this legislation.

Financial System Trading Alternatively, we could send this bill back to the House-Senate Conference to be redrafted in a much less volatile political environment: after November's midterm elections. In the meantime, we could pass an emergency supplemental measure to give our farmers and ranchers the peace of mind -- and safety net -- they need right now.

Day Trading Future Unless we act responsibly, we will be back in this same position before the six-year farm bill is set to expire, rewriting the legislation to escape the deep hole we are digging with this bill. All the while, our deficits will swell, our trading allies will become more hostile and, worst of all, the gap between the richest and poorest farmers will widen.

Financial Forex Market Trading By Rep. John Boehner (R-Ohio) and Rep. Cal Dooley (D-Calif.), conferees on the 2002 Farm Bill.

Online Trading Stock And Washington Post - 5/2/2002

Topic: Agriculture

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