Farm Bill Needs Another $1 Billion to Pass Senate
In an interview on Thursday, Senate Budget Committee Chairman Kent Conrad
(D-ND) said that the Senate Agriculture Committee would need to find another
$1 billion for conservation, nutrition, energy, and specialty crop programs
for the farm bill to be passed by the committee and Senate.
Although Agriculture Chairman Tom Harkin (D-IA) has already found
approximately $6 billion in savings, Conrad stated, "We do have about a $1
billion hole. Under any of the formulations, there is going to have to be
some savings device." Conrad said no decision has been reached on how to
come up with the $1 billion, but some anticipate that the funding could come
from cutting direct payments when commodity prices are high.
Conrad said the farm bill process has moved forward significantly since the
Finance Committee approved the agricultural tax package last week. Conrad
and his staff met with aides to Harkin and Agriculture ranking member Saxby
Chambliss (R-GA) on Wednesday. Conrad indicated that passing the energy
provisions in the Finance Committee package as part of the farm bill will be
one of the most important goals because the prospects for the energy bill
are bleak. He stated, "This energy title is the thing that most excites the
people of North Dakota, the farmers and ranchers and the business people,
who understand we have to reduce our dependence on [foreign] oil."
Source: Congress Daily PM, October 12, 2007
Julie Harker of Brownfield reported yesterday that, “Senate Ag Committee member Chuck Grassley says
he just met with Chairman Tom Harkin who says he wants to take up the Farm Bill next Wednesday,
October 24th.
“‘His statement was that he thinks if they continue to work things out the way they have so far, it'll go
fairly quickly.’”
Also, Reuters news reported (via DTN, link requires subscription) yesterday that, “The new U.S. farm law would
make a small cut in the $5.2 billion guaranteed annually to grain, cotton and soybean farmers under a proposal
circulated among farm-state senators on Tuesday.
“Higher wheat subsidies also were under discussion as part of a ‘rebalancing’ of crop subsidy rates. Farm lobbyists
and Senate staffer workers said there was no agreement on a successor to the popular 2002 law that expired at the
start of this month.”
The Reuters article added that, “‘There's no deal yet. They don't have the money,’ said one farm lobbyist, who
spoke on condition of anonymity. For weeks, senators have searched for ways within a tight budget to put more
money into public nutrition, land stewardship, biofuels, rural economic development and specialty crops.
“Under a plan from Harkin, Iowa Democrat, farmers would receive a smaller guaranteed payment if they enroll in
a ‘revenue protection’ program. At present, farmers get extra subsidies when crop prices are low. Revenue
protection would shield growers from crop failure and price collapse.
“A spokesman for North Dakota Democrat Kent Conrad, an Agriculture Committee member, said large cuts in
the guaranteed payments, which are known as direct payments, were out of the question. North Dakotans would accept
smaller cuts as a way to free up money for other priorities, he said.”
In other 2007 Farm Bill news, an update posted at The Hill Online reported that, “Democratic senators on Monday appeared close
to averting a showdown on the Senate Agriculture Committee that had threatened completion of a new farm bill this year.
“Chairman Tom Harkin (D-Iowa) is edging closer to an accommodation with other key committee Democrats and
Sen. Saxby Chambliss (R-Ga.), the committee’s ranking member, Senate aides said. The deal would protect
direct payments to farmers from substantial cuts that Harkin had been contemplating, according to one
Senate aide.
“Harkin spokeswoman Kate Cyrul said ‘a good deal of progress’ had been made, and that Harkin was hopeful
remaining details would come together to allow for strong bipartisan support at a markup next week.”
The Hill article added that, “Farm lobbyists last week said they believed Conrad [Sen. Kent Conrad (D-ND)] and
Chambliss were prepared to offer their own rival farm bill in committee if they were unhappy with Harkin’s
approach. These lobbyists also predicted that Conrad and Chambliss would have had enough votes to defeat
Harkin’s bill in committee.
“Conrad has received support for his position from Baucus [Sen. Max Baucus (D-Mont.)], who on Oct. 4 moved
an agricultural tax package through the Finance Committee. That package included tax credits to pay for a
permanent disaster assistance program supported by Conrad and Baucus.
“Agriculture lobbyists said Baucus’s action was meant to step up the pressure on Harkin to move on a bill.
Finance members have taken an active role in the farm bill debate, and in addition to Conrad and
Baucus, Finance includes Agriculture Committee members Sens. Blanche Lincoln (D-Ark.), Ken Salazar (D-
Colo.), Debbie Stabenow (D-Mich.), Mike Crapo (R-Idaho) and Chuck Grassley (R-Iowa).”
In addition, the article indicated that, “Concluding work on a farm bill is important to House Speaker Nancy Pelosi
(D-Calif.), who took an unusually active role in crafting the House bill, which was approved in July. Pelosi did so
in part to ensure that rural freshman Democrats sitting on the committee could point to the farm bill
as an accomplishment in next year’s elections. Pelosi has hailed the House bill as a step toward reforming
agricultural subsidies, although critics such as Oxfam and the Environmental Working Group say it does not go far
enough.”