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Secretary of ag sticks with farm bill veto threatSIOUX FALLS, S.D. (AP)--The man who runs the U.S. Department of Agriculture says lots of work remains before a new five-year farm bill can escape President Bush's veto pen and become law. Chuck Conner, USDA acting secretary of agriculture, told South Dakota Corn Growers Association members at their annual meeting Jan. 5 that it would be great to say a final package is nearly done. "Unfortunately, ladies and gentlemen, that is not where we are at right now," he said. Conner, a veteran of the USDA, said it's the sixth farm bill he's worked on. The $286 billion legislation "looks bleak from my vantage point, I can tell you that," he said. If some key provisions in the versions that passed the House and Senate can't be changed, it will put U.S. agricultural policy on shaky ground, Conner said, "and it is one that I and the president's other senior advisers on agriculture will recommend that he veto if it is presented to him. I do not say this lightly." The House farm bill passed 231 to 191, and the Senate version passed 79 to 14. A conference committee is the next step. Both versions contain tax increases, Conner said, adding that "budget gimmicks" are being used to increase the size of some programs, and there are increases in target prices and loan rates. "Raising taxes to pay for farm programs ... is something we have not done since 1933," the secretary of ag said. The conference committee must correct this, he said, adding that other sectors of the economy should not be asked to pay new taxes to fund new farm programs. Real farm policy reform is what's missing from the legislation, he said. Neither bill goes far enough toward imposing a meaningful income cap for participation in farm programs, according to Conner. People who make over $200,000 a year averaged over three years should not be getting farm program payments, he said. During his speech, he showed a graphic that contained numerous red dots representing farm bill beneficiaries who live in New York City. Sen. Tim Johnson, D-SD, also spoke at the Corn Growers banquet. He said the farm bill is a strong bill for rural America. "Farmers and ranchers across the nation have been anxiously awaiting the outcome of this year's reauthorization process." Johnson said, adding that he hopes the differences can be resolved. "Good things take time," he said. Actually, there will be two farm bills, Johnson said. "The energy bill passed in December is as important to South Dakota corn producers as the farm bill." A minimum of 9 billion gallons of ethanol will be produced this year, and work is needed to break down the barriers to ethanol use, the senator said. Conner said meeting the energy requirements the new energy bill places on agriculture will be a big challenge, calling it a "great opportunity." People would rather depend on the American farmer for fuel than on foreign interests, Conner said. The energy bill requires a massive increase in the production of ethanol for motor fuels, from the roughly 6 billion gallons this year to 36 billion gallons by 2022. After 2015, the emphasis would be on expanded use of cellulosic ethanol, made from such feedstock as switchgrass and wood chips, with two-thirds of the ethanol--21 billion gallons a year--from such non-corn sources. Rep. Stephanie Herseth Sandlin, D-SD, said the energy bill was a great gift to South Dakota and the rest of the nation. She said Johnson and Sen. John Thune, R-SD, worked hard for the higher renewable fuels standard in the Senate. The higher standard means the U.S. is on its way toward energy independence, and not a moment too soon, Herseth Sandlin said, given that oil traded at more than $100 a barrel on the first day of trading in 2008. There's good support for the new farm bill, Herseth Sandlin said. "We've had the broadest coalition of stakeholders we've ever had in a farm bill." She said she the farm bill needs to be finished and that she hopes it will be ready for spring planting but that common ground among the House, Senate and the administration will need to be found. "I think we're on our way to finding that common ground," she said. Despite the veto threats, Conner said he thinks it can be done. "I remain confident that we can get this done. I believe we can get this farm bill wrapped up quickly in a way that the president can enthusiastically sign," he said. The Senate's version of the farm bill has several provisions sought by South Dakota lawmakers: --A requirement that meats and other fresh foods be labeled with their country of origin starting next year, a priority for Western and Midwestern ranchers who compete with Canadian beef; --A ban on meatpackers from owning cattle more than two weeks before slaughter, sought by High Plains ranchers who own smaller operations and are hoping to stem competition from larger companies; --Higher loan rates and target prices for wheat, barley and oats, and higher target prices for soybeans; --A $5 billion disaster fund to aid farmers when crops are destroyed by weather; --Incentives for the growth of crops that produce energy. Conner told the Corn Growers that 2007 was a very good year in agriculture, with corn, soybean and wheat prices substantially higher. "It's good to see corn farmers and soybean farmers making some money," he said. In 2007, U.S. net cash farm income was $85.7 billion, according to the USDA leader, who added that $50 billion used to be the benchmark for a good year. 1/21/08 Date: 1/16/08
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