WASHINGTON -- With prospects dimming for a rebound in crop
prices, lawmakers will start work this week on a package of
farm income assistance that's expected to top $5.5 billion.
It would be the fourth multibillion-dollar bailout of the
farm economy in as many years to supplement programs enacted
by Congress in 1996. The House Agriculture Committee is
scheduled to draft its version of this year's aid package
Thursday.
"After you've had three years of assistance, it's
gotten to the point that farmers expect that unless things get
better that it's going to be there," said Mary Kay
Thatcher, a lobbyist for the American Farm Bureau Federation,
which is seeking $7 billion in aid.
This spring's congressional budget agreement set aside $5.5
billion for farm assistance that must be spent by Sept. 30,
the end of the 2001 budget year. But there is another $7.4
billion earmarked in the budget plan for 2002 farm programs
that lawmakers are likely to dip into, aides say.
The bulk of the $5.5 billion is expected to go to grain and
cotton farmers to supplement the annual "market
transition" payments they receive under the 1996 farm
law, but committee aides also are working on proposals to help
growers of soybeans, sugar, apples and other commodities.
Dairy producers also could benefit, with the possible
extension of federal price supports that are scheduled to end
this year. Sugar growers would not have to pay a
one-cent-per-pound penalty on sugar that they forfeit to the
government under their price-support program. |