H.R. 835: Agricultural Subsidy Abolition Bill of 2017

#Agricultural Subsidy Abolition Bill of 2017

WHEREAS agricultural subsidies cause unnecessary deadweight losses in the economy while providing no concrete benefits to the economy as a whole.

WHEREAS agricultural subsidies primarily go towards enriching already wealthy farmers and landlords rather than small or mid-sized farmers.

WHEREAS agricultural subsidies produce significant negative effects in the economies of developing countries for the benefit of wealthy westerners.

Section 1. Short Title

This act may be cited as the “Agricultural Subsidy Abolition Bill” or the “Agricultural Subsidy Abolition Bill of 2017”.

Section 2. Definitions

1. Agricultural subsidies will be defined for the purposes of this bill as they are by the Library of Economics and Liberty as follows: “(1) direct payments to farmers and landlords; (2) price supports implemented with government purchases and storage; (3) regulations that set minimum prices by location, end use, or some other characteristic; (4) subsidies for such items as crop insurance, disaster response, credit, marketing, and irrigation water; (5) export subsidies; and (6) import barriers in the form of quotas, tariffs, or regulations.”

Section 3. Abolition of Agricultural Subsidies

1. All federal programs that meet the definition for agricultural subsidies as defined in section 2.1 of this bill shall be abolished over a 5 year period starting in fiscal year 2019.

2. Farmers and landlords that currently receive agricultural subsidies will be able to apply for transition assistance during the time from fiscal year 2019 to fiscal year 2024 when agricultural subsidies are due to be abolished.

a. Transition assistance will be given in the form a direct cash payment to farmers and landlords equal to 80% of the value of the agricultural subsidies they would have otherwise received if this bill had not passed in fiscal year 2019, 60% of the value of agricultural subsidies they would have received in fiscal year 2020, 40% in fiscal year 2021, 30% in fiscal year 2022, 20% in fiscal year 2023, and 10% in fiscal year 2024.

b. The value of the transition assistance that shall be given out to each applicant will be assessed by the U.S. Department of Agriculture.

Section 4. Costings

1. This bill is set to save approximately 20 billion dollars a year after it is fully implemented.

Section 5. Enactment

1. This act will take effect on October 1, 2018.

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This bill was written and sponsored by u/TheDesertFox929, and Co-Sponsored by u/Kingthero and u/Fewbuffalo