WASHINGTON (AP) July 8, 2007 —
Momentum is building in
Congress for overhauling farm subsidies because of tight budgets and
increasing enthusiasm for renewable fuels and conservation programs.
Major change will not come easily. The current farm
bill, which expires in September, provides payments and other help to
supplement farmers' incomes, support crop prices and manage supplies.
Any cuts in subsidies will face resistance.
President Bush sought similar reductions upon taking
office. But he made little headway in the latest farm bill, which
Congress wrote in 2002.
Since then, Democrats have regained control of the
House and energy prices have skyrocketed, leading to more calls for
ethanol, which is derived from plants. Record prices for corn and other
crops have some people questioning the need for subsidies.
The government paid out almost $17 billion in
subsidies last year, a drop of more than $10 billion from 2000.
"It's a different dynamic,
there's just no doubt about it," Agriculture Secretary Mike Johanns
said.
Some lawmakers are rallying around a bipartisan
proposal by Reps. Ron Kind, D-Wis., and Jeff Flake, R-Ariz., to wean
farmers from government payments. Kind won 200 votes for a similar plan
during the debate on the 2002 bill. At the time, one supporter was Rep.
Nancy Pelosi, D-Calif., now the House speaker.
Their proposal would replace subsidies with savings
accounts that farmers could use to cover losses when crop prices are low
or yields are poor.
Some subsidies would be diverted to biofuels, rural
development and conservation programs that pay farmers for leaving land
idle.
Rick Ostlie, a North Dakota farmer who is president of
the American Soybean Association, said prices may be high now, but
farmers will need a safety net if they drop. Kind's savings accounts
"aren't going to help the average farmer who is having financial
problems," he said.
Lawmakers from both parties who represent farm states
expect some overhaul. They note that few extra dollars are available for
conservation and energy programs and that Congress has much less money
to work with this year. But there is little consensus on what changes
are needed.
"There's a very strong but minority viewpoint that
somehow you have to protect these largest commodity programs at all
costs," Kind said.
In an interview with the Associated Press, Johanns
said Kind has approached him two or three times about his proposal.
While the Bush administration has put forward its own ideas and does not
endorse Kind's plan, Johanns said the Democrat makes a compelling case.
"He certainly has ideas that I think everybody would
like," Johanns said. "If the approach is let's just do it all over again
like we did in 2002, those who want reform have nothing to lose by
battling on the floor of the House."
A House Agriculture subcommittee took just that
approach last month. It unanimously rejected Kind's proposal and
approved a bill that would extend the 2002 law.
Despite that vote, one of the panel's members, Rep.
Earl Pomeroy, D-N.D., agreed with Johanns that the committee must do
something to please the wider House membership, many of whom represent
urban districts. But Pomeroy also called what Kind and Flake want to do
"death by reform."
In an effort to cut back, some lawmakers want to
reduce or eliminate direct payments, subsidies that are not based on
current crop production or prices. The chairman of the Senate
Agriculture Committee, Democratic Sen. Tom Harkin of Iowa, has supported
this approach and encouraged spending more money on conservation
programs.
Johanns, Bush and others have argued for a stricter
limit on the maximum payment a farmer can receive and said payments are
not distributed equitably. Southerners traditionally have balked at the
idea, citing the costs of producing their rice and cotton crops.
Nonetheless, some reduction in payment levels is
inevitable, said Georgia Sen. Saxby Chambliss, the senior Republican on
Harkin's committee. "We don't have the funding we had in 2002 so there
are certain reforms that are going to be necessary," Chambliss said.
International trade talks also could affect the debate
because the United States is under pressure to reduce farm subsidies.
Montana Sen. Max Baucus, the Democratic chairman of
the Senate Finance Committee and a member of the Agriculture Committee,
said proposals such as Kind's would not be helpful.
"Cutting support payments today would further undercut
food production in the United States, but also undercut the United
States' bargaining leverage when we go into trade talks in other
countries," Baucus said. "We won't let it happen."
Despite continued disagreement, the House Agriculture
Committee intends to act on the bill this month. The chairman, Rep.
Collin Peterson, D-Minn., intends to skirt the money problems by
presenting two separate bills: one would stay within current budget
limits and one would have extra money.
Tensions over how to renew the law could become an
election-year problem. Presidential candidates are seeking to woo voters
in farm states and supporters of overhauling farm policy are trying to
capitalize on public scrutiny of federal spending.
Sen. John Thune, R-S.D., whose first bid for the
Senate fell victim to the last farm bill debate, suggested Congress may
turn to a two-year extension of the 2002 law to keep the election out of
it. He said there is growing concern that Kind's and Flake's legislation
might prevail.
"If there's a
vacuum there, that proposal will fill it," he said.