An End to Days of High Cotton?
GOP Constituents Caught in Battle Over Subsidies
By Dan Morgan
Washington Post Staff Writer
Tuesday, March 8, 2005; Page A01
A Bush administration proposal that would cut billions of dollars in subsidies to big cotton growers has struck at a core GOP constituency, setting off a battle in Republican congressional ranks that pits budget cutters and prairie-state populists against traditional agricultural interests.
The Bush plan threatens an elaborate government safety net that is the handiwork of such legendary southern Democrats as Lyndon B. Johnson (Tex.) and James O. Eastland (Miss.), as well as a new generation of Republican leaders from the region. The move reflects growing pressure to hold down soaring federal deficits and a recognition that even a business woven deeply into the history, economy and politics of the South must come to terms with dramatic changes underway in global trade.
Underscoring that reality, the World Trade Organization in Geneva ruled Thursday that U.S. cotton subsidies violate global trade rules because they exceed limits agreed to in 1944. If the United States does not correct the situation, Brazil, which brought the complaint, could retaliate against U.S. products.
As part of its 2006 budget proposal, the Bush administration would trim benefits for growers of most staple crops, including wheat, corn and soybeans. But economists and officials say the hardest hit would be the big producers of cotton in Republican strongholds of Texas, Mississippi, Arkansas, Tennessee, Alabama and Georgia. Large-scale operators in California and Arizona would also be affected....
http://www.washingtonpost.com/wp-dyn/articles/A15353-2005Mar7.html