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May 11, 2008

Amid World Food Shortages, Texas Rice Farmers Paid Not to Farm

Farm1_3 While millions are starving throughout the world because of a lack of rice, the US Government is paying subsidies to Texas rice farmers whether they plant and harvest rice or not just so long as rice had been planted there some time in the past. Some of this land has even been developed as "cowboy starter kits," divided into tracts and sold to people who build on one acre and collect farm subsidies on the remaining acreage. Tenant farmers have been put out of business by landlords who raise their rents in order to "capture" the farm subsidy as by law it has to go to whoever actually farms the land, in this case the tenant.

In an article, "Farm Program Pays $1.3 Billion to People Who Don't Farm," the Washington Post reports:

Even though Donald R. Matthews put his sprawling new residence in the heart of rice country, he is no farmer. He is a 67-year-old asphalt contractor who wanted to build a dream house for his wife of 40 years.

Yet under a federal agriculture program approved by Congress, his 18-acre suburban lot receives about $1,300 in annual "direct payments," because years ago the land was used to grow rice.

Matthews is not alone. Nationwide, the federal government has paid at least $1.3 billion in subsidies for rice and other crops since 2000 to individuals who do no farming at all, according to an analysis of government records by The Washington Post.

Some of them collect hundreds of thousands of dollars without planting a seed. Mary Anna Hudson, 87, from the River Oaks neighborhood in Houston, has received $191,000 over the past decade. For Houston surgeon Jimmy Frank Howell, the total was $490,709.

...

In 1981, the Texas rice belt extended over about 600,000 acres. By last year, USDA records show, the amount of planted rice had shrunk to 202,000 acres, partly because landowners were able to get farm payments even if no rice was grown on their land.

In fact, so many landowners and farmers are collecting money on their former ricelands -- $37 million last year alone -- that the acres no longer used for rice outnumber the planted ones.

Not only that but wealthy landowners can get property tax reductions on that portion of their land considered "agricultural" even though they have no intention of growing anything on it. In addition they can get "emergency disaster relief" even though they have not suffered a disaster.

On a clear, cold morning in February 2003, Nico de Boer heard what sounded like a clap of thunder and stepped outside his hillside home for a look. High above the tree line, the 40-year-old dairy farmer saw a trail of smoke curling across the sky -- all that remained of the space shuttle Columbia.

Weeks later, de Boer was startled to learn that he was one of hundreds of East Texas ranchers entitled to up to $40,000 in disaster compensation from the federal government, even though the nearest debris landed 10 to 20 miles from his cattle.

The money came from the U.S. Department of Agriculture as part of the Livestock Compensation Program, originally intended as a limited helping hand for dairy farmers and ranchers hurt by drought. Hurriedly drafted by the Bush administration in 2002 and expanded by Congress the following year, the relief plan rapidly became an expensive part of the government's sprawling system of entitlements for farmers, which topped $25 billion last year.

In all, the Livestock Compensation Program cost taxpayers $1.2 billion during its two years of existence, 2002 and 2003. Of that, $635 million went to ranchers and dairy farmers in areas where there was moderate drought or none at all, according to an analysis of government records by The Washington Post. None of the ranchers were required to prove they suffered an actual loss. The government simply sent each of them a check based on the number of cattle they owned.

...

Then, on Feb. 1, 2003, the shuttle exploded. To ensure recovery of the debris and pay for emergency costs, President Bush issued a federal disaster declaration. As an unintended result, most of East Texas was then eligible for livestock funds. Denton County's livestock owners collected $433,000, records show.

"Speaking personally, I didn't think it was necessary at that point in time," said Calvin Peterson, an 81-year-old rancher who heads the local farm committee. "It might have been more political than anything."

In Henderson County, about 100 miles southeast of Dallas, Nico de Boer felt the same way. When he arrived from the Netherlands 17 years ago, de Boer had 90 acres, a house, one barn and fewer than 200 cows. Today, he has 1,000 acres, multiple cow barns and sheds, 650 cows that produce 3 million pounds of milk monthly, a BMW in the driveway, a swimming pool, and two more farms in neighboring counties.

The rolling hills surrounding his sprawling farm receive a generous average of 40 inches of rain annually. When the shuttle exploded, pastures were full and there hadn't been a drought or any other type of weather disaster in years, records show. But after the presidential disaster declaration, John Reeves of the local USDA office informed livestock owners in Henderson County they were eligible. They eventually collected $751,083 despite no shuttle damage.

Reeves said he had no choice but to write the checks. "Congress passed legislation and approved us for that Livestock Compensation Program, and that's what it was," he said.

"The closest debris I heard about was 10 to 20 miles away. There wasn't anything here," de Boer said. "Believe me, we would be better off if the government got out of the business and limited the payments to those who really need them."

Farm2_2 Politicians in Washington have no respect for the taxpayers' money. It's all about getting special financial favors for constituents in their districts. There's no account- ability and very little transparency. Boondoggles such as this are rarely reported in the mainstream media. In addition to pissing away money to farmers or those who don't even farm under the aegis of a farm subsidy bill, they pour billions down the rathole of the war in Iraq and additional billions supporting the military-industrial complex to build boats the military doesn't even want. America surely is a nation in decline. The Republicans have set out to destroy government, and they have largely succeeded, destroying the American empire in the process. Meanwhile, Congress has come up with an even more costly farm subsidy bill.

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