CNN - Farm bill rolls toward final passage

Farm bill rolls toward final passage

March 22, 1996
Web posted at: 9:10 p.m. EST

WASHINGTON (CNN) -- A massive reform of farm programs is headed for final passage in Congress next week. It will, for the first time since the Great Depression, break the link between price fluctuations and government subsidies for farmers. Subsidies for corn, cotton, and various grains would be phased out over seven years. Price supports for dairy products would also be eliminated.

The farm bill is a compromise effort between the House and Senate versions, completed by House and Senate negotiators Thursday evening. The final version was formally approved by the negotiators Friday. It will go to a vote sometime next week, and is expected to pass the House and Senate. President Clinton said in a statement Friday he would approve the bill, although he continues to have "very serious reservations."

Agriculture Secretary Dan Glickman said he will recommend that the president sign the bill, but both Glickman and Clinton said they were concerned about the fate of farmers should crop prices drop drastically. But, Clinton said, "farmers need to know the conditions under which they are operating as they head out into their fields in the coming weeks, and the hour is growing late."

Clinton pledged that he would work with Congress next year to "strengthen the farm safety net," and create a "truly farmer-friendly bill."

Critics of the bill argue that that it takes a safety net away from farmers because it cuts subsidy amounts gradually to phase them out without regard to market conditions. Right now, crops are bringing good prices, and the subsidy amount is simultaneously high. But if unusually bad weather should strike a few years down the road, and crops fail, the subsidies will be much smaller and may not be enough to support farmers who have lost their livelihood for the season, critics say.

Supporters say the bill controls spending and has the advantage of telling farmers from year to year exactly how much they will receive from the government. If they want, farmers can bank extra money for harder times. Current programs can't control spending, and farmers receive money based on market conditions.

The bill would:

Provide funds for conservation and environmental enhancement programs.

Create and fund a Fund for Rural America, which would run rural development and agricultural research programs.

Reauthorize federal food stamp programs for another two years, protecting spending for the program while Congress works to overhaul the welfare system.

The final numbers have not been figured, but the bill could cut $2 billion from a total of $48.8 billion in farm spending over the next seven years.

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Farm bill rolls toward final passage

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