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Foxx Urges Support for Spending Safeguard Amendment to Farm Bill
June 21, 2013

WASHINGTON, June 19 -- Rep. Virginia Foxx, R-N.C. (5th CD), issued the following news release:

Congresswoman Virginia Foxx (R-NC) today introduced the Spending Safeguard Amendment to the 2013 Farm Bill which will ensure taxpayers are off-the-hook for paying for Washington's mistakes in the event government cost estimates for the Farm Risk Management Election Program fail to match reality.

Heritage Action today recommended a yes vote on the amendment.

"There is no reason for good government advocates of either party to oppose the Spending Safeguard Amendment," Congresswoman Foxx stated. "Government cost projections have been known to be wrong on numerous occasions - one need look no further than the 2008 Farm Bill for evidence of that. Under current law, when government gets its numbers wrong, taxpayers still have to pay. My amendment quells all of the uncertainties created by such mandatory spending with one simple proposal that puts a finite number on an otherwise infinite taxpayer liability."

H.R. 1947, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013, is slated to cost taxpayers a whopping $940 billion over 10 years. The bill repeals the indefensible direct payments system, but replaces it with the "Farm Risk Management Election" program. This program alone is predicted to cost $23.37 billion over 10 years, but it could cost more...much more.

The 2008 Farm Bill cost taxpayers 51% more than its drafters predicted.

In the case of the Farm Risk Management Election Program, cost estimates are based on high target prices which exceed historical averages. If these target prices fall and the program's costs increase beyond projections as a result, taxpayers will be forced to pay the difference.

The Foxx Spending Safeguard Amendment will cap spending on the Farm Risk Management Election program at 110% of CBO-predicted levels for the first five (5) years in which payments are disbursed (FY 2016 - 2020). If CBO predictions are reasonably accurate, nothing will happen. But if CBO's predictions are completely off-base with reality, this amendment ensures taxpayers won't be forced to pay for another costly Washington mistake.

This amendment will:

* Safeguard taxpayers if this program ends up costing significantly more than advertised;

* Prevent automatic, unappropriated spending from unexpectedly skyrocketing; and

* Set a striking new precedent for fiscal responsibility.