[Congressional Record Volume 151, Number 109 (Tuesday, September 6, 2005)]
[Extensions of Remarks]
[Page E1758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               INTRODUCING THE RICE FARMERS FAIRNESS ACT

                                 ______
                                 

                             HON. RON PAUL

                                of texas

                    in the house of representatives

                       Tuesday, September 6, 2005

  Mr. PAUL. Mr. Speaker, I am today introducing the Rice Farmers 
Fairness Act. This legislation conditions the continuation of farm 
subsidies in the state of Texas upon the maintenance of rice 
production. Federal law allows for the continuation of subsidies to 
landowners who discontinue tenant rice farming on their land. In 
essence, this means that the subsidy continues to flow in spite of an 
end to production.
  This is a ``something for nothing'' subsidy of the worst kind! As a 
result of this provision, there is a very real threat to the 
agricultural infrastructure. With landowners receiving subsidies in 
spite of lack of production, the entire warehousing, processing and 
``value-added'' industries are put at risk.
  As grain elevators, processors and others see a reduction in demand 
for their services because of the diminution of production permitted by 
Federal law, they have a disincentive to continue to provide said 
services, services which must remain in place in order for those who 
remain in production to be able to bring to market the rice which they 
continue to produce. Thus, by way of the decimation of the 
infrastructure, this subsidy to non-producers comes at the expense of 
those who continue to produce rice. Therefore, the provisions of 
Federal law which provide this subsidy actually amount to another form 
of Federal welfare, taking from producers and giving to non-producers. 
These destructive government policies have particularly pernicious 
effect in Texas, where rice farming, and the related industries, are a 
major sector of the economy in many towns along the Texas coast.
  My legislation is very simple and direct in dealing with this 
problem. It says that those who have tenant rice farmers producing rice 
in Texas must agree to continue to maintain rice in their crop rotation 
if they wish to receive subsidies. In this way, we can remove the 
perverse incentive, which the Federal Government has provided to 
landowners to exit the rice business and thereby put the entire rice 
infrastructure at risk.
  America's rice farmers are the most efficient, effective producers of 
rice in the world, despite the many hurdles erected by Washington. The 
Rice Farmer Fairness Act helps removes one of these hurdles and this 
makes America's rice farmers even more efficient. In order to enhance 
our competitive position, we should also end our embargoes of other 
nations. Congress should eliminate the burdensome taxes and regulations 
imposed on America's farmers. I hope my colleagues will join me in 
removing these federally imposed burdens on rice farmers by supporting 
free trade, low taxes and regulations, and cosponsoring my Rice Farmer 
Fairness Act.

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