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Senate approves farm aid assistance
By Philip Brasher, AP Farm Writer
August 3, 2001
 
WASHINGTON (AP) - The Democratic-controlled Senate caved into a White House veto threat and approved a House-passed package of special farm assistance Friday that provides $2 billion less than Democrats wanted.

The $5.5 billion measure now goes to President Bush for his expected signature.

The Senate abruptly approved the legislation on a voice vote after Republicans blocked action on a $7.5 billion measure that had been approved by the Senate Agriculture Committee.

``The gun was held to our heads and the White House refused to compromise,'' said the committee chairman, Sen. Tom Harkin, D-Iowa. He said the House measure was ``totally inadequate to meet the needs of our farmers across the country.''

Republicans ``wanted to defeat the $7.5 billion, and they did,'' said Senate Majority Leader Tom Daschle, D-S.D.

The impasse had threatened to delay final approval of the measure until September, when Congress returns from a monthlong recess that starts this weekend.

This is the fourth straight year that Congress has provided a multibillion-dollar bailout of the farm economy to compensate for low crop prices.

Daschle said Democrats might try to win passage later of the additional $2 billion they wanted.

The White House argues that $5.5 billion was enough, given recent improvements in the farm economy.

Without the $5.5 billion in government payments, the Agriculture Department estimates, net farm income this year will fall to $42.4 billion, $2.8 billion below last year.

Senators were in a rush to finish work on the bill because the congressional budget agreement provided $5.5 billion in farm aid for the fiscal year that ends Sept. 30. The money must be distributed to farmers by that date or it can be used for other purposes.

The Senate bill contained $5.5 billion for direct payments to grain and cotton farmers, almost $900 million more than the House measure, plus $542 million for conservation programs and $150 million for apple growers.

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The bill is S. 1246

On the Net: Senate committee: http://agriculture.senate.gov