Peterson- Farm bill will be the same, but different

House Agriculture Committee Chairman Collin Peterson, D-MN, Jan. 8 spoke to a standing-room only audience at the 2007 farm bill issue conference at the American Farm Bureau Federation's 88th annual meeting.

He said that the 2002 farm bill worked pretty well, and that direct payments and the Loan Deficiency Program probably would continue. He added that he would like to see a new farm bill that looks "a lot like what we have now."

However, Peterson did propose a few changes. For example, he said that the farm bill should include some kind of permanent disaster program.

"We are still intending to get a disaster bill passed for the 2005 and 2006 crop years," Peterson said. "And, hopefully, we'll get something done in the farm bill so we're not in this shape again."

Peterson said the House probably would pass a $3 billion disaster bill, and that it would be one of the first things the House considers after completing its "first 100 hours" priorities.

He did not provide any specifics on what a permanent disaster program might look like, although he later said that the committee needed to take a look at the role crop insurance might play in such a program.

Peterson said that providing funds for conservation programs would be an issue, but moving beyond that, "what will drive this farm bill is renewable fuels."

"The House leadership conference is with us on this," he said concerning his goal to provide more incentives to expand renewable fuel production and use.

"I go a little further than they do (on energy). I'm for drilling, nuclear, coal, anything it takes to reduce our dependence on foreign oil," he continued, to loud applause from the audience.

Peterson said that he would like to see 50 percent of the fuel in America be renewable fuel, but it can't come from just corn.

"We've got to do cellulosic, too," he said. "The issue will become: How do we produce the necessary feedstocks?"

He said research is needed to figure out what grows best in different parts of the country, and until enough cellulosic ethanol plants are built to provide an adequate market for switchgrass, straw and other feedstocks, the farm bill might be changed to include a program that pays farmers to produce those crops. The country needs to start growing them now, he said.

The budget for the 2007 farm bill will be tighter than it was for the 2002 farm bill, Peterson said. The Congressional Budget Office in February will issue its baseline for farm program spending, and it will be lower, he explained, because farm programs have come in about $17 billion under budget over the last five years. Peterson said that agriculture programs should get some consideration for saving money, and he is pressing the issue with the budget committees.

"It's not going to be easy," he said, "but I think we will be able to get the resources."

Concerning timing, Peterson said his goal is to get the new farm bill passed and on the president's desk before the current farm bill expires in September. That hasn't been done for a while, he said, "but we intend to do it this year."

Peterson said he intends to get the bill out of the House before the August recess and Senate Agriculture Committee Chairman Tom Harkin, D-IA, intends to do the same. Then Congress could work out a conference agreement over the August break, finish the tough issues in the early part of September and get the bill on the president's desk by the end of that month.

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Date: 3/22/07

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