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FARM POLICY SHIFT? Bush administration frowns on subsidies, favors conservation, research

Associated PressGrand Forks Herald
September 27,  2001
 
WASHINGTON -- In a break from traditional Republican farm policy, the Bush administration last week criticized subsidies for big grain and cotton farms and proposed putting money into conservation programs that benefit more growers.

The subsidies are causing "unintended (and unwanted) consequences," by stimulating excess production and inflating land rents, the administration says in a 120-page report outlining its priorities for farm and food policy.

A policy for all

Rewarding farmers for conservation and strengthening controls against foodborne diseases and crop pests would provide broad benefits to the country, the report says.

"Agricultural policy should embrace everybody who is in the agricultural sector," says J.B. Penn, the Agriculture Department's undersecretary for farm and foreign agricultural services.

The bulk of federal subsidies go to large farms that raise corn, wheat, rice, cotton and soybeans, crops that account for 20 percent of the nation's agricultural output.

The report also says new trade agreements are needed to expand markets for U.S. farm products.

Penn, a Democratic economist, was the report's chief architect, but he says the recommendations had been approved by the White House.

'A call for change'

Environmentalists praised the report, especially its assessment of existing subsidy programs and its endorsement of incentive payments for farmers who take steps to control animal waste and prevent fertilizer runoff from their fields.

"It really is a call for change," says Tim Searchinger, an attorney with the activist group Environmental Defense.

The American Farm Bureau Federation, the nation's biggest farm group, is reacting more coolly.

"If you read between the lines, they're talking about basing farm policy more on social interests than production. We would disagree with that kind of philosophy," says Mary Kay Thatcher, a lobbyist for the group.

The report makes few specific proposals but instead is intended to provide guidance for Congress as it revises programs scheduled to expire a year from now.