    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [May 13, 2008]
    [Pages 677-678]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Farm Legislation
    May 13, 2008

        In January 2007, I was hopeful that leaders in Washington could come
    together on a good farm bill. At that time, my administration had
    completed more than 50 listening sessions across the country and
    developed a reform-minded farm bill based on the thousands of comments
    received. Our proposal would make wise use of the people's money by
    reforming farm programs, funding emerging priorities, and providing a
    safety net that better targets benefits for farmers.
        I am deeply disappointed in the conference report filed today, as it
    falls far short of the proposal my administration put forward. If this
    bill makes it to my desk, I will veto it.
        Today's farm economy is very strong, and that is something to
    celebrate. It is also an appropriate time to better target subsidies and
    put forth real reform. Farm income is expected to exceed the 10-year
    average by 50 percent this year, yet Congress's bill asks American
    taxpayers to subsidize the incomes of married farmers who earn $1.5
    million per year. I believe doing so at a time of record farm income is
    irresponsible and jeopardizes America's support for necessary farm
    programs.
        Congress claims that this bill increases spending by $10 billion,
    but the real cost is nearly $20 billion when you include actual
    Government spending that will occur if this bill becomes law. Instead of
    fully offsetting the increased spending, the bill resorts to a variety
    of gimmicks, such as pushing commodity payments outside the budget
    window. Adding nearly $20 billion in additional costs to the current 10-
    year spending level of approximately $600 billion is excessive,
    especially when net farm income is at a record high and food prices are
    on the rise. My administration clearly identified numerous reforms as
    essential to justify even a $10 billion increase in spending, yet this
    bill includes none of those reforms in full.
        Crop prices have averaged a 20-percent increase since just last
    year. Still, Congress wants to raise payment rates for most crops and
    create new subsidies which can be triggered even at very high prices.
    The bill fails to stop the practice of collecting subsidies even when
    crops are sold later at a higher price, it restricts our ability to
    redirect food aid dollars for emergency use in the midst of a global
    food crisis, and

    [[Page 678]]

    it falls short of the administration's conservation proposals. By
    increasing trade-distorting subsidies, the bill undermines our ability
    to open foreign markets to American agricultural goods. The bill creates
    an egregious new sugar subsidy program that will keep sugar prices high
    for domestic consumers, while making taxpayers subsidize a handful of
    sugar growers. These are just a few of the reasons why I cannot support
    this bill.
        In the absence of a good farm bill, I call on Congress to extend
    current law for at least 1 year. The administration's reform-minded
    proposal would be preferable to current law, but in light of the bill
    produced by conferees, an extension is now the better policy for
    American agriculture and American taxpayers. It is a far superior option
    than supporting a bill that increases farm subsidy rates, spends too
    much, and fails to reform farm programs for the future.