We have all heard the expression, "Talk is Cheap." Early next year, we will get a direct look at the first budget request of the Congress from the Administration of Donald Trump. He won election with glib and critical remarks about Washington, perhaps best described as needing to "Drain the Swamp." As outlined by Jim Bovard in the Wall Street Journal, it will be interesting to see if he includes draining these parts of the swamp in his first budget:
Cotton Subsidy. In 2014 U. S. Farmers received a subsidy of almost half of the market value of cotton--in the billions.
Sugar. The granddaddy of all subsidies, the U. S. government imposes quotas and price supports that result in doubling the cost of sugar to the consumer.
Peanuts. Federal subsidies to peanut farmers are expected to reach a billion dollars this year, paying the farmers to not grow the crop.
Farm Insurance. This is not insurance against acts of God, it is a direct payment over and above markets. It will total $7.5 billion next year.
Farm Marketing. Here is a relatively small one, a giveaways to the politically connected pet food and winemakers for promoting their products in foreign countries, approximately $176 million a year.
Remember Talk is Cheap.