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Administration endorses phasing out crop subsidies, doubling conservation spending
By PHILIP BRASHER,  Magic Valley     
October 22, 2001
 
WASHINGTON (AP) -- The Bush administration on Wednesday endorsed an overhaul of farm programs that would phase out crop subsidies, double spending on conservation and pay farmers to act to reduce their financial risk.
      The plan by Sen. Richard Lugar, the senior Republican on the Senate Agriculture Committee, would reduce assistance to grain and cotton growers and give money to farms that raise fruit, vegetables and livestock. Those operations now get little, if any, subsidies.
      Instead of crop subsidies, farmers could get money to buy insurance policies that protect them against drops in revenue.
      "This is a thoughtful piece of legislation and is consistent with the president's principles," Agriculture Secretary Ann Veneman said.
      The administration says existing programs encourage excess production and primarily benefit big farms that need help the least.
      Lugar's five-year plan would cost about $82 billion, the maximum that the White House wants to spend. A bill passed by the House earlier this month would extend farm programs for 10 years and cost $170 billion.
      Under Lugar's proposal, almost any farm could qualify for vouchers to buy income insurance or to match deposits in IRA-type savings accounts. The payments also could be used for various marketing contracts. A farm that traditionally has $100,000 in annual gross revenue, including government payments, would get a payment of $6,000.
      "Farmers in every state, every county, every neighborhood would share alike," said Lugar, who owns a corn and soybean farm in Indiana.
      Under existing farm programs, the bulk of federal subsidies goes to large farms where corn, wheat, rice, cotton and soybeans are grown. Those crops account for 20 percent of the nation's agricultural output.
      Some farm-state senators and farm organizations have sharply criticized the plan.
      "It would be a drastic, devastating cut for farmers in our part of the country," said Sen. Kent Conrad, D-N.D.
      Lugar expressed confidence he would find co-sponsors and said Veneman would help him.
      Veneman spokesman Kevin Herglotz said she also would work with other senators on proposals. "We want to build consensus," Herglotz said.
      Lugar's plan would increase spending on conservation programs by $9.4 billion over the five-year period and expand the food stamp program at a cost of $3.4 billion.
      "The Lugar bill is a much fairer deal for taxpayers and family farmers and ranchers and gives conservation and food assistance programs the prominence they deserve," said Kenneth Cook, president of the Environmental Working Group, a research and advocacy organization.
      The committee is expected to begin working on a farm bill next week. The White House has urged Congress to wait until next year to finish the legislation. Existing programs expire in September 2002.