Washington (February 14, 2006) – the U.S. Department of Agriculture’s Economic Research Service released a report indicating that net farm income is projected to decrease by nearly $20 billion in 2006. Texas Farmers Union said this decrease is further reason why the White House’s FY 2007 budget proposal is ill-conceived and ill-timed.
President Bush is seeking several cuts to the farm safety net. He has requested a five percent cut in commodity programs and new user fees on sugar and dairy farmers. These proposals will result in cuts of $1.1 billion in FY2007 and $5 billion over the next five years.
“The budget proposal that President Bush sent to Congress last week justified huge cuts in agriculture programs by pointing to high farm income in the past two years. Yet four days later the U.S. Department of Agriculture projected net farm income to decrease 20 percent in 2006,” TFU President Wes Sims said. “These new numbers prove what we already know out here in the fields in Texas. Now is not the time for the President to cut programs that help keep our nation’s farmers and ranchers afloat.”
Farm income will be lower next year for several reasons:
· Commodity prices have been declining
· Production in many areas has been down as a result of weather-related disasters
· Input costs have skyrocketed as a result of energy costs and rising interest rates
Texas Farmers Union is urging Congress to reject President Bush’s budget proposal
|Texas Farmers Union, P.O. Box 738, Sweetwater, Tx 79556|