Downsizing Blog
With Congress scheduled to reauthorize farm subsidies this fall, lawmakers should consider reform lessons from New Zealand. Facing high budget deficits in the 1980s, New Zealand cut government spending, including eliminating nearly all farm subsidies. That was an impressive reform because the country is highly dependent on agriculture. Since then, New Zealand has remained a model of market‐based farming.
With Congress scheduled to reauthorize farm subsidies this fall, lawmakers should consider reform lessons from New Zealand. Facing high budget deficits in the 1980s, New Zealand cut government spending, including eliminating nearly all farm subsidies. That was an impressive reform because the country is highly dependent on agriculture. Since then, New Zealand has remained a model of market‐based farming.
Congress is scheduled to consider a major farm bill this year, which will reauthorize many U.S. Department of Agriculture (USDA) programs, including farm subsidies and food stamps. The legislation could cost $150 billion a year and so presents an opportunity to find budget savings and reduce the flood of red ink in Washington.
The bipartisan debt‐ceiling deal passed in June reflected a new congressional focus on spending restraint. Congress should extend the restraint when it considers a major farm bill this fall. Cutting farm subsidies is a good way to tackle wasteful spending and reduce budget deficits.
Which farm programs should Congress cut?
Farm subsidy programs run by the U.S. Department of Agriculture displaces private methods of managing risk and gives subsidies to farm businesses that do not need them.
Congress’s Farm Bill bundles a bunch of loser provisions together, making it a legislative winner.
Federal hand‐out programs are looted by criminal gangs in an organized fashion.
Congress is scheduled to reauthorize the Farm Bill this year, the largest part of which is the $127 billion Supplemental Nutrition Assistance Program (SNAP).
Americans are getting used to failures by government experts.
One GOP reform would strengthen work requirements for the Supplemental Nutrition Assistance Program (SNAP), also called food stamps.
Spending on the Supplemental Nutrition Assistance Program (SNAP) has doubled since 2019 to $127 billion in 2023.
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