U.S. Senate rejects Republican farm bill

WASHINGTON -- The Senate Tuesday night rejected a Republican farm bill backed by the Bush administration that would have created new subsidized savings accounts to help farmers cope with drops in income.

Republicans have kept a Democratic bill bottled by refusing to allow a limit on debate. But the 55-40 defeat of the Republican alternative "sends a pretty clear signal of where the votes are" and provides momentum to the Democratic legislation, said Sen. Kent Conrad, D-N.D.

Both bills would increase spending on farm programs by nearly 80 percent over the next 10 years and reauthorize farm and nutrition programs through 2006. The Democratic bill, however, would raise crop subsidies and create a new payment program tied to changes in commodity prices. The GOP bill didn't increase subsidy rates but instead offered farmers more money in fixed annual payments to go with matching deposits for IRA-style savings accounts.

Democrats, who control the Senate, said the GOP measure didn't provide an adequate safety net for producers or enough money for conservation programs.