News Coverage
Farm Bill Wins Easy House Nod
Vote Would Survive Veto; Measure Heads To Senate
Published May 15, 2008
WASHINGTON – The House defied a veto threat Wednesday and passed a bill promoted as a way to cut grocery prices, feed hungry people and help the U.S. reduce its reliance on foreign oil.
Its critics said the $290 billion outline for the next five years of agriculture policy is too expensive and gives too much money to wealthy farmers and landowners.
The House passed the bill 318-206, enough support to override President Bush’s promised veto.
“A market-based system, combined with a safety net, has made ours the most productive farm system in the world, and this bill will help maintain our productivity,” said Rep. Mark Souder, R-3rd.
The Senate is expected to pass the bill today. Sen. Richard Lugar, R-Ind., a senior member of the Agriculture Committee, opposes it.
Lugar’s objections include $40 billion in subsidies that he said violate world trade rules. He warned Wednesday that the agriculture subsidies will allow countries to slap retaliatory tariffs on any U.S. industry, not just U.S. crops.
A year and a half in the making, the bill provides money for food stamps and other nutrition programs, conservation, ethanol research and subsidies for farmers and landowners.
The subsidy provision is the most controversial, drawing rebukes from lawmakers such as Rep. Mike Pence, R-6th, who said it was irresponsible.
Under the bill, couples with farm-related income of up to $1.5 million could collect subsidies. The current cap is $2.5 million. In addition, people with more than $500,000 in non-farm income would not be able to collect any subsidies.
Based on an analysis of Department of Agriculture statistics, the Environmental Working Group said $515.9 million in subsidies was paid to Hoosier farm owners in 2006, including 37 who were paid more than $200,000.
One provision included in an earlier version of the bill was removed at the request of Gov. Mitch Daniels and Hoosier lawmakers. It would have forced Indiana to revoke its contract with a private company for screening food stamp applicants. The program was formerly administered by state employees.
More than half the money in the bill would pay for nutrition programs such as food stamps, school lunch and emergency food assistance for the needy.
The bill also:
• Expands a program to provide fresh fruits and vegetables to schoolchildren.
• Increases subsidies for certain crops, including fruits and vegetables excluded from previous farm bills.
• Urges the government to buy surplus sugar and sell it to ethanol producers for use in a mixture with corn.
• Cuts a per-gallon ethanol tax credit for refiners from 51 cents to 45 cents. The credit supports the blending of fuel with the corn-based additive. More money would go to cellulosic ethanol, made from plant matter.
• Requires that meats and other fresh foods carry labels with their country of origin.
• Blocks farmers from collecting subsidies for multiple farm businesses.
• Reopens a major discrimination case against the Agriculture Department. Thousands of black farmers who missed a deadline would get a chance to file claims alleging they were denied loans or other subsidies.
• Pays farmers for weather-related farm losses from a new $3.8 billion disaster relief fund.
The bill also contains a few home-state projects, including tax breaks for Kentucky racehorse owners, extra help for farmers in Hawaii and Alaska and dollars for salmon fishermen in the Pacific Northwest
