by Daren Bakst
The Heritage Foundation
June 14, 2013
Backgrounder
The 2013 Senate and House farm bills add costly new subsidy programs. These new programs would go well beyond providing a safety net for farmers by protecting them from virtually all risk. Some of the programs, allegedly designed to cover major losses, are so generous that they would effectively provide guaranteed payments to some farmers. Many of the cost assumptions for the new programs are based on commodity prices staying at or near record highs. If these prices come down to their longer-term averages, the costs to taxpayers could be astronomical. Congress is gambling taxpayer money on risky assumptions.



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