White House urges delay in farm bill

AP Farm WriterWASHINGTON (AP) -- The White House on Wednesday urged lawmakers to delay work on an overhaul of farm programs, saying this is the wrong time to consider a large increase in spending on agricultural programs. House leaders refused to put off the bill.

In a statement of administration policy, the Office of Management and Budget also said the $170 billion bill that the House started debating Wednesday would encourage continued overproduction of crops while failing to help the farmers who most need government assistance.

"In the context of the current state of the nation, consideration of large new financial commitments that do not require immediate action are not timely," the statement said, adding that the bill misses the opportunity to modernize farm programs.

House Speaker Dennis Hastert, R-Ill. declined to delay the bill because he "felt it was important to get on with the nation's business, and the farm bill is an important part of the nation's business," said spokesman John Feehery.

Farm groups were hoping that House approval this week would put pressure on the Senate to act quickly on a bill of its own.

Agriculture Secretary Ann Veneman said Tuesday that there was no reason for Congress to hurry, since existing programs don't expire until next September.

"Certainly we would like to have time for a thoughtful discussion of all the issues," she said. "It's not an issue that we think needs to be taken up immediately."

But Rep. Charles Stenholm, D-Texas, said Wednesday that the 1996 "Freedom to Farm" law that the legislation would replace had been an utter failure. The 1996 law was supposed to wean farmers from government payments, but Congress has since approved billions in additional assistance.

Stenholm said the new bill would be "good for American farmers while providing predictability for our taxpayers."

The legislation was approved by the House Agriculture Committee in July and counts on using $72 billion in surplus funds that were projected in a congressional budget agreement this spring. That surplus is fast disappearing in the wake of the terrorist attacks in September.

Farm groups think that quick action in Congress will get them most or all of that $72 billion.

Bob Stallman, president of the American Farm Bureau Federation, called the legislation an "economic stimulus package" for rural America.

The bill would increase subsidies for grain, cotton and soybean farmers by $37 billion over 10 years by creating a new assistance program tied to swings in crop prices.

Groups representing those growers are worried about a proposed amendment that would shift $19 billion of their subsidies into conservation programs that take land out of production or reward farmers for improved environmental practices.

Aides to Rep. Larry Combest, R-Texas, chairman of the House Agriculture Committee, have told farm lobbyists he will block final action on the bill if that amendment is approved. Combest was confident that the amendment would be defeated, spokesman Keith Williams said Tuesday.

Stallman, a Texas rice grower, said the amendment would "create more economic hardship in the countryside."

The proposal's supporters say it would ensure that more states benefit from farm programs.

"It's the biggest challenge (farm groups) have faced in a long time," said Ken Cook, president of the Environmental Working Group, an advocacy organization. "It's really looking at redrawing the subsidy map."

Besides the conservation amendment, there also are expected to be proposals in the House to lower price supports for sugar and to put strict payment limits on grain and cotton subsidies. A program created a year ago allows large farms and corporations to bypass the $150,000-per-person cap on crop subsidies.

------The bill is H.R. 2646.

----On the Net:

House committee: http://www.agriculture.house.gov