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Senate democrats boost farm aid $2B
By Philip Brasher, AP Farm Writer
July 26, 2001
 
WASHINGTON -- Risking a presidential veto, Democrats are pushing through the Senate a $7.48 billion package of farm aid that would spend $2 billion more than the White House wants.

The money approved Wednesday by the Senate Agriculture Committee includes money for conservation programs and favors for a wide variety of farm interests, including producers of sugar, honey, milk, apples, peas and lentils.

Republicans accused Democrats of provoking a confrontation with President Bush that could delay the payments. The House approved an aid package this month totaling $5.5 billion

"The situation has not improved for our farmers and probably is worse than last year," said the panel's chairman, Sen. Tom Harkin, D-Iowa.

But in a letter to Harkin, White House Budget Director Mitch Daniels said he would recommend that President Bush veto any package exceeding $5.5 billion, the amount set aside for fiscal 2001 farm aid in the congressional budget agreement.

"Stronger prices across the livestock sector and for much of the crops sector continue to improve prospects for many farmers and ranchers," Daniels wrote.

The Agriculture Department estimates net farm income this year at $42.4 billion, $2.8 billion below last year. The 2001 estimate does not include the supplemental assistance Congress is considering.

The Senate committee approved the $7.48 billion package on a voice vote and rejected a $5.5 billion Republican alternative 12-9.

The measure now goes to the Senate floor. Differences with the House bill will be worked out later.

Harkin had said in June that the farm bill should spend no more than $5.5 billion, but committee members pressed him to spend more. The additional money would come from amounts Congress has allocated for farm programs in 2002.

Republicans said the extra $2 billion will be needed for an overhaul of agricultural programs that expire next year.

"We're taking money from next year to satisfy this year's needs," said Sen. Craig Thomas, R-Wyo.

Some highlights of the Senate bill:

-$5.5 billion for direct payments to grain and cotton farmers, almost $900 million more than the House approved.

-$542 million for conservation programs, including $250 million for a program that pays farmers to make improvements on their land that prevent runoff and other environmental problems.

-$150 million for apple growers. The House has a similar amount in another bill.

-$52.6 million for sugar growers.

-$42 million for dairy producers.

-$34 million to help farmers with flooded lands.

-$25 million in compensation for damage caused by army worms.

-$20 million for loans to rural businesses.

-$20 million to subsidize some older Americans who shop at farmers markets.

-$20 million in grants to create new products from crops.

-$3 million for certifying organic farmers.

Congress has provided $25 billion in special payments to farmers over the past three years to supplement federal subsidy programs. Farm groups have asked for as much as $10 billion more this year.

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On the Net: Senate Agriculture Committee: http://agriculture.senate.gov