WASHINGTON (AP) -- Farmers would get $6.5 billion in special
assistance this year, $1 billion more than the limit set by
the White House, under legislation starting to move through
Congress.
It would be the fourth multibillion-dollar bailout of the
nation' s farm economy in as many years.
The bill the House Agriculture Committee was to consider
Wednesday would provide $5.5 billion in payments to grain and
cotton growers and an additional $1 billion divided among
producers of everything from prunes to wool to tobacco.
In a letter to the committee last week, White House budget
director Mitch Daniels said he would recommend President Bush
" not sign a bill providing more than $5.5 billion in
additional assistance" for this year' s crops.
But the committee' s Republican chairman, Larry Combest of
Texas, says the White House budget office is " out of
touch with the financial crisis farmers around the country are
facing. Their recommendation is based on incomplete and
unrealistic economic data."
Rep. John Boehner, R-Ohio, is expected to offer an
amendment that would cap this year' s aid package to $5.5
billion. But Mary Kay Thatcher, a lobbyist for the American
Farm Bureau Federation, expressed confidence Tuesday that
Boehner would lose.
" Things are worse in the country this year than last,
" she said.
Congress has provided $25 billion in special payments to
farmers over the past three years to supplement federal
subsidy programs, and farm groups have asked for as much as
$10 billion more this year.
The first $5.5 billion in this year' s bill would
supplement the annual " market transition" payments
that grain and cotton farmers receive under an existing
program.
Growers of soybeans, sunflowers and other oilseeds would
receive an additional $500 million.
The bill also includes:
$220 million for the government to buy surplus fruits and
vegetables, including apples, apricots, black-eyed peas,
cherries, prunes, grapefruit, lentils, onions and potatoes.
$129 million for tobacco growers.
$57 million for peanut producers.
$44 million to suspend an assessment on this year' s sugar
crop.
$40 million to expand eligibility for crop subsidies, known
as " loan deficiency payments, " on grain and other
crops.
Congress started passing the annual bailouts in 1998 after
sluggish exports and bumper crops led to a collapse in prices
for a wide array of commodities.
The Agriculture Department last month revised its estimate
of net farm income for 2001 to $42.4 billion, up $1.1 billion
from its January forecast, because of higher livestock prices.
But farm groups say many producers can' t survive financially
without additional aid this year to supplement existing
subsidy programs. Production expenses, which include the cost
of fuel and fertilizer, are expected to rise $3.6 billion this
year, or 1.8 percent.
The bill is H.R. 2213.
On the Net:
House Committee on Agriculture: http://www.agriculture.house.gov |