US farmers are bracing for substantial cuts in federal spending on agricultural programs. Farmers expect the cuts will follow closely the recommendations of the conservative Heritage Foundation in its report to the new administration on agriculture. The foundation calls for cutting $1.5 billion out of the $16.2 billion food-stamp and school-lunch programs; $1.1 billion from the $2.3 billion commodity price support programs; and $2.5 billion from the $11.1 billion farm credit and rural development programs.
How will farmers react? Best guess is they will accept the cuts patriotically -- if similar cuts are made throughout the economy. They reason that what they lose in program cuts will be gained back through a reduced inflation rate.m