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Conference committee sends farm bill agreement to House and Senate

By Doug Rich

Farm bill negotiators have announced agreement on a five-year $300 billion plan that will be sent back to the Senate and House for approval. The conference committee held a news conference on April 8 to announce their achievement.

Members of the conference committee were quick to remind reporters that 73 percent of this so-called farm bill goes to nutrition programs and that only 16.1 percent goes to crop, commodity and disaster programs. Conference committee members said we should begin referring to this as a food bill, not a farm bill.

"I am a happy man," Sen. Tom Harkin, D-IA, said. "It has been a long and difficult road to this day; but, today, as chairman of the Senate-House Conference Committee on the farm bill, I am happy to announce that the principal farm bill negotiators have produced a final conference agreement on the Food, Conservation, and Energy Act of 2008."

The agreement is a strong bipartisan bill that benefits everyone from Cuming, Iowa to New York City. Harkin said, adding the bill provides a strong safety net for farmers and ranchers, insures a safe dependable supply of high quality food for consumers, provides for the nutritional needs of lower income Americans, increases access to fresh fruits, vegetables for school children, and protects our natural resources.

At a press conference on May 9, Secretary of Agriculture Ed Schafer said that he did not endorse the agreement that the conference committee had negotiated.

"As Americans are tightening their belts to cope with higher food and energy prices, this bill would increase the bill on taxpayers by nearly $20 billion," Schafer said. "Congress claims that the spending increase is only $10 billion, but really that doesn't take into account all the budget gimmicks and shift changes that are still in the bill."

Here are a few of the highlights from this tentative agreement:

--It eliminates government payments to individuals with farm incomes over $750,000 and for those individuals with non-farm incomes over $500,000.

--It makes farm payments directly attributable to individuals and eliminates the three-entity rule.

--It provides farmers with a new option for those who wish to participate in a state level revenue protection program. If participating, the farmer must give up a portion of his or her direct payments and loan benefits. When farm revenues fall, based on the statewide average, farmers will receive protection.

--Country-of-origin labeling for meat and produce made mandatory.

--nutrition programs increased by $10.3 billion.

--It includes an additional $1 billion for the fresh fruit and vegetable snack program.

--There will be an additional $5.4 billion to stop the erosion of food stamp benefits.

--More assistance will be made available to families with childcare expenses by taking the cap off the deductible childcare allowance and by raising the allowable benefit by 50 percent.

--Food banks will receive an additional $1.25 billion.

--It includes $4.4 billion in additional funds for the Environmental Quality Incentives Program and the Conservation Stewardship Program.

--The Wetland Reserves Program will get an additional $1.3 billion to fund improvements in that program.

--Doubles funding for Farm and Ranchland Protection Program.

--More than $1 billion will go to expand the supply of biofuels made from biomass and crop by-products.

--Corn ethanol tax credit reduced and redirected to incentives for cellulosic ethanol.

--Specialty crops will receive $1 billion. If passed by Congress, the total funding for specialty crops in this agreement would be more than any farm bill ever passed into law has provided for specialty crops.

--There are two new titles in this farm bill: one for livestock and one for specialty crops.

"This is a bill that should pass with large margins in both Houses and this bill goes more than half way to meet the President's wishes and concerns," Harkin said. "It is a bill that I hope he will sign."

Senator Chuck Grassley (R-IA) said the Senate and House conferees have put together a good faith attempt at reform. Grassley said that everybody wants a bill that the President can sign.

"We are not at the finish line, yet," Congressman Collin Peterson (DMN) chairman of the House Agriculture Committee said. "We still have to get it through the House and the Senate, but I think we have been able to satisfy all of our constituents, by and large."

Schafer said the President was very clear and direct in his response to this agreement.

"The President will veto this bill when he gets it," Schafer said.

Doug Rich can be reached by phone at 785-749-5304, or by e-mail at richhpj@aol.com.

5/19/08
5 Star OK\6-B

Date: 5/15/08


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