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Lawmakers start work on bailout program for U.S. farmers
The Associated Press
June 11, 2001
 
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.