The US Ministry of Agriculture wants to reduce agriculture subsidies

12/12/2007 12:00 - 958 Views

The US Minister of Agriculture Mike Johanns said he would persuade and agitate the Senate to reduce maximum annual income level of farmers to be subsidized from federation in the first week of September when the Congress gathered again, because he saw that the level of USD1 million in draft approved by House of Representative in July was too high.

In a speech at the meeting with US farmers last week, Mr. Johanns said the George W Bush’s administration supposed that all farmers who had annual income upwards USD 250,000 would not receive subsidies. Mr. Bush also warned to veto all drafts imposed tax on agricultural foreign companies having branches in this country.

The current Law of Agriculture of America would expire in 7th September 2007, in which the farmer households with the income of USD 2,5 million still got governmental subsidies. The draft has just passed by the House of Representative has reduced minimum income level receiving subsidies to USD 1 million per year, but it is four times higher than one proposed by the White House.

However, Mr Johanns also said that lowering and cutting subsidies of the US would be implemented in case of European peasants and others agreed to do business by themselves without government subsidies.

Vietnam News Agency
September 4, 2007

Source: SGTT