Farm Bill Renews Fight Over Subsidies

U.S. Agriculture Secretary Mike Johanns speaks during a roundtable discussion on the Beginning Farmers Title of the Administration's Farm Bill proposals, in an, April 17, 2007 photo, at Iowa State University in Ames, Iowa. U.S. Agriculture Secretary Mike Johanns said Tuesday, July 3, 2007 that he is content with the pace of negotiations for the new farm bill, even if it isn't sorted out as quickly as some would like. (AP Photo/Charlie Neibergal, file) (Charlie Neibergall - AP)

WASHINGTON -- Momentum is building in Congress for overhauling farm subsidies because of tight budgets and increasing enthusiasm for renewable fuels and conservation programs.

Major change will not come easily. The current farm bill, which expires in September, provides payments and other help to supplement farmers' incomes, support crop prices and manage supplies. Any cuts in subsidies will face resistance.

President Bush sought similar reductions upon taking office. But he made little headway in the latest farm bill, which Congress wrote in 2002.

Since then, Democrats have regained control of the House and energy prices have skyrocketed, leading to more calls for ethanol, which is derived from plants. Record prices for corn and other crops have some people questioning the need for subsidies.

The government paid out almost $17 billion in subsidies last year, a drop of more than $10 billion from 2000.

"It's a different dynamic, there's just no doubt about it," Agriculture Secretary Mike Johanns said.

Some lawmakers are rallying around a bipartisan proposal by Reps. Ron Kind, D-Wis., and Jeff Flake, R-Ariz., to wean farmers from government payments. Kind won 200 votes for a similar plan during the debate on the 2002 bill. At the time, one supporter was Rep. Nancy Pelosi, D-Calif., now the House speaker.

Their proposal would replace subsidies with savings accounts that farmers could use to cover losses when crop prices are low or yields are poor.

Some subsidies would be diverted to biofuels, rural development and conservation programs that pay farmers for leaving land idle.

Rick Ostlie, a North Dakota farmer who is president of the American Soybean Association, said prices may be high now, but farmers will need a safety net if they drop. Kind's savings accounts "aren't going to help the average farmer who is having financial problems," he said.

Lawmakers from both parties who represent farm states expect some overhaul. They note that few extra dollars are available for conservation and energy programs and that Congress has much less money to work with this year. But there is little consensus on what changes are needed.

"There's a very strong but minority viewpoint that somehow you have to protect these largest commodity programs at all costs," Kind said.