Harkin: Bush Wants to Cut Farm Funds

By Philip Brasher
AP Farm Writer
Oct. 16, 2001

WASHINGTON –– The Bush administration wants to hold farm spending well below levels that were set aside for agricultural programs in this spring's congressional budget agreement, says the chairman of the Senate Agriculture Committee.

That deal allocated $73.5 billion in surplus funds for farm programs over the next 10 years. The administration now wants to spend no more than $25 billion over the next five years, Sen. Tom Harkin, D-Iowa, said Tuesday.

"We must move forward, using the $73.5 billion in additional funding for the farm bill, as provided in the congressional budget resolution," Harkin said. The White House position would "clearly complicate the task of writing" legislation, he added.

The House approved legislation earlier this month that would extend farm subsidies for 10 years, using the full $73.5 billion. Harkin's committee is starting work on its version of the legislation on Thursday.

The administration sharply criticized the House bill but has not said how much spending it will support.

A spokesman for Harkin said he based the $25 billion figure on information from aides to Indiana Sen. Richard Lugar, the committee's senior Republican. A spokesman for Lugar did not return telephone calls Tuesday.

A spokesman for Agriculture Secretary Ann Veneman declined comment.

Lugar's aides also have told lobbyists that they expect the administration to endorse legislation he is proposing to phase out existing farm subsidy programs. Lugar wants to use the savings for programs that would reward farmers for improving their environmental practices and taking steps to control their financial risks, such as buying special insurance.

Livestock producers and fruit and vegetable growers would be eligible for the money under Lugar's plan. Existing subsidy programs primarily benefit grain, cotton and soybean farmers.

Lugar's idea has gotten a cool reception from farm groups.

"We're very disappointed with the apparent direction that Mr. Lugar and a few of the administration leadership appear to be headed," said Bruce Knight, a lobbyist for the National Corn Growers Association.

Several proposals are expected to emerge in the Senate, including one being developed by Sen. Charles Grassley, R-Iowa, that is designed to provide more money to corn and soybean growers than the House legislation.

The House bill retains existing subsidies for grain, cotton and soybeans and creates a new program to provide still more assistance to those farmers when prices are low.

The Bush administration stopped short of threatening to veto the legislation but said the cash will benefit big farms that need it the least while promoting more price-depressing surpluses of crops.