Madam Chair, I have an amendment at the desk. Madam Chair, as I'm certain my colleagues are aware by now, in 2002 Brazil filed a complaint with the WTO accusing the U.S. of trade-distorting cotton subsidies that were inconsistent with our…
Madam Chair, I have an amendment at the desk.
Madam Chair, as I'm certain my colleagues are aware by now, in 2002 Brazil filed a complaint with the WTO accusing the U.S. of trade-distorting cotton subsidies that were inconsistent with our international trade obligations. The WTO sided with Brazil; and after years of debate, a WTO arbitration panel authorized Brazil to engage in retaliatory trade sanctions against the U.S. for more than $800 million.
Instead of effectively reforming our programs, however, the administration agreed to pay $147.3 million annually in technical assistance to Brazilian cotton farmers every year until the issues of trade compliance in our cotton programs are resolved in the next farm bill's passage or a mutually agreed upon solution is reached. There is little chance that we're going to have reauthorization this year of the farm bill. I would suggest that it's probably not likely that we will do so next year either.
So here we are again. We've talked about this before: spending money, 147 million taxpayer dollars to the Brazilians, so that we can continue to subsidize our own cotton farmers. We simply shouldn't do that.
Now some will say, hey, if we do this, it will spark a trade war, if we get rid of this payment to Brazil. In my view, we dealt with that effectively in the Appropriations Committee. I offered an amendment saying if you want to pay the Brazilians off to not have them retaliate for our trade protections, then let's do that out of the money we're giving to our own cotton farmers. So take out of direct payments $147 million and pay that. That amendment was adopted in the Appropriations Committee.
Well, guess what? A point of order was raised here and that amendment was stricken, so we couldn't do that. So all this concern--people say they're concerned about the taxpayer, well, we protected the taxpayer there by saying let's take the money out of the fund that we already pay our own farmers and pay off the Brazilians. That was rejected here. And so here we are again.
We have an amendment that will be voted on later, the Kind amendment, which will simply strike that payment. I plan to vote for that amendment; I hope we do that. But another way of approaching that as well is to simply go at our own cotton subsidies to ensure that we're not distorting the market by doing this program in the first place.
Now the Ag Committee will say, that's our expertise, let us deal with that; we'll deal with that in a new farm bill. Well, they dealt with that in the old farm bill, and many of us stood here and warned and said this is trade distorting; the WTO is going to rule against us and we're going to end up with retaliatory trade sanctions.
Well, the Ag Committee went ahead and did it anyway. It didn't fix the problem. They will say, well, we tried, we tried. But it's not the direct payments that are the problem. It's the countercyclical, it's the other programs that we have. And until that is dealt with, we're going to have these trade sanctions.
So when the Ag Committee stands up and says let us deal with that, I would remind people we have let them deal with that, and they haven't dealt with it. And so we have to go about it in another way.
I would simply say we cannot continue to subsidize our own ag interests this way, in particular this cotton program, when we know it's out of step with our international trade obligations.
So you can go about it in two ways. You can go ahead and say, hey, we're going to not pay Brazil this amount, this protection money--or whatever you want to call it, this tribute--and then that will force us to deal with our own cotton subsidies; or we can deal with the cotton subsidies ourselves with this amendment and simply say we aren't going to do these trade-distorting cotton subsidies anymore. Then there won't be a need to pay Brazil off.
So that's what this amendment does. I would urge adoption of it.
I yield back the balance of my time.
Will the gentleman yield?
I thank the gentleman.
I recognize the appropriations process isn't the best way to legislate, it really isn't, and this is a clumsy way. This only applies to this act, and you have to do it in strange ways. I understand that.
But we are told that we ought to rely on the expertise of the Ag Committee. Well, the expertise of the Ag Committee is what got us into this problem in the first place. It is what got us into the problem of having to pay Brazil in order to continue to subsidize our own farmers. That is what we are dealing with here.
I recognize this is clumsy. I recognize this is uncomfortable. But we have got to do this some way, and we can't rely on just waiting until the next farm bill is passed. It may not be this year, or likely won't be. It won't be next year, or likely won't yet. So we could be doing this for years. So I recognize it is clumsy, I apologize for that, but we have to do something at some point.
I thank the gentleman. I want to thank the gentleman for his work in this area for a long time over the years to try to end these out-of-step programs that we have in the agricultural field. Let me just correct something that was said before. It was said that we're in this position because of Brazil, because of the practices that they're doing. No. It's because our own agricultural policy--in this case, our cotton subsidies--is trade distorting. Nobody can stand up in this body or on this floor and make a case otherwise. Nobody can stand up with a straight face and say that our cotton program that we have is not trade distorting. That's why we're in this problem. That's why Brazil was able to take this case to the WTO, and the WTO ruled in their favor--because we have trade distorting farm policies. That's what we need to fix. That's the intent of this amendment.
There was an amendment last night by Congressman Kind that will be voted on later today. I may not and likely will not call for a rollcall on this one so that people can focus on that one. The Kind amendment limits payments to Brazil. If we do that, then we can force a change in our own policy, and we can force that issue better than perhaps any other amendment right now. So that's what I would encourage people to vote for, is the Kind amendment, when it comes to a rollcall later. If you do not believe that it's proper to be sending money to Brazil to address our own trade distorting cotton policy, then vote for the Kind amendment later today.
I thank the gentleman for yielding.
Madam Chair, I have an amendment at the desk.
This is a rather straightforward amendment. I should say, before I start, that an identical amendment to this was approved when we voted on H.R. 1 earlier this year by a vote of 261-158.
I yield to the gentleman from Georgia.
Okay. Then, reclaiming my time, I will be very brief.
The ethanol industry, as we all know, receives a trifecta of government support. Its use is mandated by law. It is protected by a prohibitive import tariff on imported ethanol; and it receives billions in subsidies, effectively paying them to follow the law.
Everyone knows that ethanol subsidies are going to go away. Thirty years is enough. I mean, even Al Gore and others who supported them in the beginning said, no, that was a mistake, and we're going the other direction now. So ethanol supports--or direct subsidies or the import tariffs--are going to go.
The industry is asking, How can we keep these subsidies going? The effort now is to pay for infrastructure, so the Secretary of Agriculture, Secretary Vilsack, has indicated that he wants the USDA to determine how it can potentially use programs to promote the distribution and storage--blender pumps--and how to put money into infrastructure. As we all know, once you start putting money into infrastructure, then you say, well, we've already put some money in, and we've got to continue to do it, so those subsidies will continue and continue and continue.
We cannot continue to do this, Madam Chair. We cannot continue to fund this, particularly when we are borrowing 40 cents on the dollar. I would urge the adoption of the amendment, and I am glad that the chairman supports it.
I yield back the balance of my time.
I thank the gentleman and thank him for his articulate remarks on this.
I failed to mention the breadth of support for this amendment in the outside community. Let me just read some of these names.
I thank the gentleman.
Suffice it to say, there's a long list of organizations supporting this. Everyone on the right from Americans for Limited Government, Americans for Prosperity; on the left, Freedom Action, Friends of the Earth, Greenpeace; then everyone in the middle, the Grocery Manufacturers Association, Milk Producers Council, National Chicken Council, National Council of Chain Restaurants, National Meat Association, National Turkey Federation, National Wildlife Federation, and on and on and on.
This is a great amendment and I urge its adoption.
This amendment is supported by the following organizations:
Action Aid USA; American Frozen Food Institute; American
Meat Institute; Americans for Limited Government; Americans
for Prosperity; California Dairies, Inc.; Clean Air Task
Force; Competitive Enterprise Institute; Environmental
Working Group; Friends of the Earth; Freedom Action;
Greenpeace USA; Grocery Manufacturers Association; Milk
Producers Council; National Chicken Council; National Council
of Chain Restaurants; National Meat Association; National
Restaurant Association; National Turkey Federation; National
Wildlife Federation; Oxfam America; Southeast Milk, Inc.;
Taxpayers for Common Sense.
Madam Chair, I demand a recorded vote.
I have an amendment at the desk.
Madam Chair, much attention has been paid to making significant cuts in Federal spending. The first step in addressing the massive public debt that has accumulated, I would submit, is that all areas of spending need to be on the table. This includes spending on farm subsidies. We've already talked a lot about this today.
Over the last 15 years, almost three-quarters of farm payments have gone to just 10 percent of producers. The bottom 80 percent of recipients account for slightly more than a tenth of that money. Under current law, recipients are entitled to receive farm subsidies so long as their adjusted gross income, or AGI, is less than $500,000 in nonfarm AGI and $750,000 in farm AGI.
Thus, you can have an adjusted gross income of slightly less than $1.25 million and still ask taxpayers to foot the bill for your Federal agriculture payment. Let me say that again. You can have an adjusted gross income of $1.25 million, adjusted gross income, and still go to the trough here and ask the taxpayers for farm subsidy payments. I would ask anyone, how can they explain why a family earning more than $1 million a year needs to receive a check from the government?
This amendment would lower that income limit to be eligible to receive farm payments from $1.25 million to $250,000 in adjusted gross income. I think a farmer has done well if they clear $250,000. I think it's wonderful if they do that. They should try to take a day off from their hard work if they do. But don't come back to the Federal Government and say, we need more farm subsidy payments. Let's have some sanity in this program here.
I urge adoption of the amendment.
I yield back the balance of my time.
Madam Chair, I demand a recorded vote.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, administered by the USDA's Foreign Agricultural Service, the MAP program uses funds from the Commodity Credit Corporation to aid the development, expansion and maintenance of foreign markets for U.S. agricultural commodities and products. It does so by forming partnerships with nonprofit trade organizations and cooperatives, nonprofit State regional trade groups, small businesses and others to market our products overseas.
In a perfect world, if there is a lot of money hanging around to do something, this might be a good thing to do to help these small companies market their products overseas. I would argue that is really not the proper role and function of government, but people could argue when times are good, let's do that. But we are borrowing 40 cents on the dollar. Every dollar that we spend on this kind of thing is borrowed. And we are borrowing money to subsidize companies, small and large, to market their products overseas.
A while ago, The New York Times shined some light on this program. They spotlighted the ridiculousness of a fashion show in India put on with taxpayer money in partnership with the cotton industry's Cotton Council International. Here we are subsidizing a fashion show in India in partnership with the Cotton Council International.
The article notes that ``over the last decade, the program has provided nearly $2 billion in taxpayer money to agricultural trade associations and farmer cooperatives. These promotions are as varied as a manual for pet owners in Japan and a class at a Mexican culinary school to teach aspiring chefs how to cook rice for Mexican customers.'' Come on. We are spending money that we are borrowing for this kind of activity.
You will hear arguments for every dollar we spend in this, it yields $20 in returned income or whatever else. You always hear that when you hear about government spending that people want to protect. But let me say, when we are running debt and deficits like we are today, we shouldn't be running programs like this. We ought to save money where we can.
Time magazine also noted here that a lot of the money goes to large farmer-owned cooperatives. It will be portrayed it is just helping small businesses, that there have been reforms to make sure it doesn't go to corporations like McDonald's or whatever else.
But this article noted that corporations like Sunkist, Welch's and Blue Diamond, which grows and sells almonds, combined these three companies had over $2 billion in sales in 2009. These aren't small companies, yet we are subsidizing them. We are subsidizing the promotion of their products overseas. I am glad they are exporting. I hope they continue to export. But they don't need to do it with taxpayer money.
I urge adoption of the amendment.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.