News & Events - Archived News

[ Up ]
 
Senate farm bailout vote gives Bush another win
By Charles Abbott, Reuters
August 3, 2001
 
WASHINGTON (Reuters) - The Democratic-controlled U.S. Senate handed President Bush his third big legislative win of the week on Friday as it passed a $5.5 billion farm bailout rather than risk a veto of costlier plan.

Senators adopted a U.S. House of Representatives bailout package by voice vote after they failed to shut off debate on their own $7.5 billion dollar plan, which Bush had threatened to veto as excessive.

The action, which ensures growers will receive payments by the end of September, followed victories this week for the president on energy policy and a patients' bill of rights.

Bush said he would sign the bill, the fourth farm rescue in four years.

``This vote is a victory for our nation's farmers at a time when they need it the most. I praise the Senate for agreeing to the House bill and look forward to signing this helpful measure into law,'' he said in a statement.

The billions of dollars in aid is intended to help offset chronically low corn, soybean and other grain prices. It brought the total of farm aid Congress has approved since grain prices collapsed in late 1998 to $30.5 billion.

Senate Majority Leader Tom Daschle of South Dakota said Democrats would try in the fall to increase farm aid further. But North Dakota Democrat Byron Dorgan acknowledged, ``Round One is over. The other side won. We admit that.''

PAYMENTS TO CORN, SOY FARMERS

About $5 billion of this year's bailout would go to grain, cotton and soybean growers, with a smattering of minor crops getting the rest. Payments would be about 85 percent of the amount growers received last year.

``There is a tremendous and collective sigh of relief in farm country as of this morning,'' said Sen. Pat Roberts, Kansas Republican. ``Rather than a train wreck and a partisan battle, we have passed emergency relief for our farmers and ranchers.''

Passage of the bailout ended for the moment a campaign by Eastern senators to expand milk price cartels to half of the nation. Currently, the six New England states have the only dairy compact, and it is slated to expire on September 30.

Senate Agriculture Committee Chairman Tom Harkin complained the White House was unwilling to compromise despite weakness in the farm economy.

``The gun was held at our heads and the White House refused to compromise,'' said Harkin, Iowa Democrat.

For weeks, Bush administration officials have said $5.5 billion would be adequate, when coupled with strong livestock prices and an uptick in grain markets, to lift farm income to near-record levels.

``Obviously we've had good livestock prices across the board, milk prices have been fairly good recently and even on the grains, we've seen some slight increase in prices,'' Agriculture Secretary Ann Veneman said at the White House.

``So I would say there's some easing of the downturn in prices that we've seen in previous years.''

DEADLINE LOOMING

The Senate action came amid a fast-approaching Sept. 30 deadline to make rescue payments this fiscal year.

``We were in a position if we did not take action now, it was very conceivable money that was destined for American farmers would disappear,'' said Indiana Sen. Richard Lugar, the Republican leader on the Agriculture Committee.

The Congressional Budget Office -- Congress' scorekeeper on federal spending -- warned if farm aid was not signed into law during August, Congress would lose authority to spend money earmarked for farm aid this fiscal year.

Besides the CBO warning and the veto threat, the House adjourned on Thursday for the August recess, leaving senators with no partners to work out a compromise. In the end, it was $5.5 billion or nothing, said a House staff worker.

``I think they made a mistake when Chairman Harkin insisted on bringing up an ag bill that was $2 billion above what had been requested by the president,'' said Senate Republican Leader Trent Lott of Mississippi.

The Senate bill would have sent $6 billion to grains, cotton and soybeans, several hundred million dollars to minor crops and $542 million to conservation.

Groups speaking for soybean, cotton, wheat and corn growers told Harkin on Friday ``the only course available'' was to accept the House-passed plan or risk losing the funds altogether.

Harkin responded to criticism of his handling of the bill by saying Republicans ought to be ``more independent-minded and not just accede to what the president wants.'' Critics said Harkin erred by waiting too long to write a bill that amounted to a wish list.