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White House Wants Careful Farm
Bill Action; Dems Advise Haste

FARGO, N.D. —(AP)— U.S. Agriculture Secretary Ann Veneman said Friday there will be enough federal money for an overhaul of farm programs, even if it is not approved until next year.

``Our concern has been that the process not be rushed,'' Veneman said Friday during a conference call with North Dakota reporters.

``It's not that we want to wait until next September to have a farm bill,'' Veneman said. ``We just want to make sure that there's enough time for a deliberative process.''

Sen. Kent Conrad, D-N.D., said any delay would be ``wildly irresponsible.''

``Nothing could be more clear: The expenses of the federal government are going up because we're at war,'' said Conrad, chairman of the Senate Budget Committee. ``The revenues of the federal government are going down because we're in an economic slowdown.

``Does anyone not see that?'' Conrad said.

Veneman said Mitchell Daniels, the federal budget director, has made assurances that money for ``good farm policy'' will be available, ``regardless of whether it happens this year or next.

``We really have tried to move a process along that is broad in its approach and that recognizes the needs of the broadest number of farmers,'' she said.

Existing farm programs were set in 1996 and expire in September 2002.

The House approved a $170 billion farm program overhaul last month, over White House objections. It includes higher subsidy payments for farmers when market prices are low, and less money when crop prices are high.

The administration has endorsed Senate legislation, introduced by Republican Richard Lugar of Indiana, that would phase out current subsidy programs. Instead, it would give farmers money to buy revenue insurance, or put in savings accounts.

Republican Gov. John Hoeven has also been lobbying the Bush administration to favor a new farm program this year.

``I think originally the White House thought it would be next year before they were dealing with a farm bill,'' Hoeven said. ``The good news is, the administration is engaged in a discussion with the Senate ... and they're committed to having the funding there.''

Iowa Sen. Tom Harkin, the Democrat who chairs the Senate Agriculture Committee, has offered a plan to limit crop subsidies, depending on the crop.

Sen. Byron Dorgan, D-N.D., said Lugar's proposal was ``not much of a farm bill'' and ``would be devastating to our part of the country.''

Both Harkin's proposal and the House plan need work, Dorgan said, although he said the House legislation is better than current programs.

North Dakota Agriculture Commissioner Roger Johnson wrote Harkin on Friday asking for changes in how some support payments are calculated.

Support rates included in the House bill are based on old production figures and should be updated, Johnson said.

Veneman also said the USDA is not taking a stand on a proposal from Lugar to get rid of sugar price supports.

Lugar is a longtime critic of the federal sugar program, which restricts imports and offers high loan rates as a way to prop up prices. He contends the policy benefits big sugar farmers at the expense of consumers.

In the face of Veneman’s comments about haste, farm-state Democrats pressed for quick congressional action.

A letter to administration officials signed by 24 Senate Democrats, including Majority Leader Tom Daschle, said, ``Such a delay would have serious repercussions for family farmers, since the level of funding now set aside for agriculture is not likely to be available next year.''

This spring's congressional budget agreement set aside $170 billion for the next 10 years to be spent on farm programs, including $74 billion that was expected to come from projected budget surpluses.

Sen. Kent Conrad, a North Dakota Democrat who is chairman of the Senate Budget Committee, said the administration's pledges to support the necessary funding for a farm bill next year are ``pretty hollow.''

``The expenses of the federal government are going up, the revenues are going down. There's going to be far less available to write a farm bill,'' Conrad said.

Existing farm programs expire in September 2002. The House approved an overhaul of the programs in October; the Senate has yet to write its version.

The chairman of the Senate Agriculture Committee, Sen. Tom Harkin, D-Iowa, didn't sign the letter and says he isn't concerned about the funding. However, Harkin wants his committee to approve a bill next week, even if the Senate may not take final action on it until after the first of the year, he said.

The committee got a start on its work last Wednesday by approving an undisputed section of the bill authorizing the continuation of various loan programs.

Sen. Craig Thomas, R-Wyo., expressed concern that the Senate would move too quickly. ``I hope we don't stampede ourselves into doing this.''

Farm organizations are divided over whether Congress should delay finishing the legislation.

Harkin is introducing legislation that would create two new farm subsidy programs and double conservation spending.

``While it may not be everyone's best wish list, it will be balanced,'' Harkin said.

Some environmental activist groups say it doesn't spend enough on conservation; the administration has not commented on his plan. Ferd Hoeffner of the Sustainable Agriculture Coalition said Harkin has ``done a credible job of addressing the priority concerns of the conservation community.''

The administration says the House bill may violate U.S. trade commitments and provides too much money to big grain and cotton farms.

``We feel it's important to work together, to build a consensus to move forward on good sound policy,'' said Agriculture Department spokesman Kevin Herglotz.

     



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