Farm Bill Passes, Subsidies And All

WASHINGTON - The Senate on Friday approved a farm bill that would continue to funnel billions of dollars in subsidies to wealthy landowners and farmers who are earning record-breaking prices for their crops, rebuffing a concerted campaign by some senators to shift money to conservation, nutrition and deficit reduction.

The bill has drawn a veto threat from President Bush, who has criticized the subsidy payments and the creation of a $5 billion permanent disaster fund.

The White House has an unlikely set of allies in taxpayer groups, environmentalists, physicians and rural community advocates who tried to change the bill's priorities. They pledged to continue lobbying as the House and Senate try to reconcile the differences in their respective bills.

Supporters of the Senate bill point out that it institutes significant changes, including support for biofuels and for fruit and vegetable farmers.

Senate Agriculture Chairman Tom Harkin, D-Iowa, fought for some of the changes during what he called "a hard week" of debate before the bill passed 79-14, a margin wide enough to override a presidential veto.

"We were able to work within a very strict budget allocation ... and pass a farm bill that is good for agriculture, good for rural areas and good for the health of Americans," Harkin said.

"This farm bill fails to provide the fundamental reform we need in Washington," said Sen. Frank R. Lautenberg, D-N.J., who proposed a failed amendment that would have phased out subsidies and used the money for nutrition, conservation and free crop insurance for all growers.

The $288 billion farm bill sets agriculture policy for five years, but its influence extends to school lunch programs, conservation programs, alternative fuel development, food safety and the amount of help that hungry Americans receive.

About 66 percent of the farm bill deals with nutrition programs, such as food stamps, but the bill also gives billions of dollars in subsidies to farms that grow a few major crops, including corn, soybeans, cotton, rice and wheat.

The bill does establish some limits on subsidies. Currently, farmers with an adjusted gross income of $2.5 million can receive commodity payments. The bill gradually would lower that to $750,000 by 2010, except for growers for whom 67 percent of their adjusted gross income comes from a farm. Current law allows owners of former farmland that has been subdivided for residential use to continue to receive commodity payments. The bill would limit those payments.

Sen. Amy Klobuchar, D-Minn., introduced an unsuccessful amendment that would have immediately banned subsidies for full-time farmers earning more than $750,000 a year and part-time growers earning more than $250,000.

"I believe in a safety net, but I believe it is time to move to some reform," Klobuchar said. Acknowledging the growing anger about farm spending, she said, "If we don't do the reform in the farm states, it is going to happen to us."

The section of the bill that deals with nutrition would expand a snack program Harkin created to provide fresh fruit and vegetables to the 4.5 million children in elementary schools nationwide. It also would increase food stamp benefits and ensure they keep pace with the cost of living.

The bill strengthens mandatory Country of Origin Labeling popular with consumers.