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. |