More News on Farm Subsidies

News EditorGovernment, Industry News

farmbillThe Senate on Tuesday blocked the first of several planned attempts to slash farm subsidies in the $286 billion farm bill.

The Senate rejected, 58-37, an amendment by Sens. Richard Lugar, R-Ind., and Frank Lautenberg, D-N.J., that would have phased out most farm subsidies and replaced them with stronger crop insurance for all farmers. The money saved would have been shifted to nutrition and conservation programs designed to protect environmentally sensitive farmland.

Farm-state senators lobbied against the amendment, saying it would be too drastic a change for the agricultural sector. Lugar said current government farm programs benefit the wealthiest farmers and should be scaled back as crop prices are hitting all-time highs.

Supporters of the legislation are pushing for final Senate passage before lawmakers adjourn for the year. The five-year bill would extend and expand crop and dairy subsidies along with popular nutrition aid programs, including food stamps. Most of those programs have been operating under a temporary extension since the last five-year farm law expired Sept. 30.

The Senate is expected to vote later this week on an amendment sponsored by Sens. Byron Dorgan, D-N.D., and Charles Grassley, R-Iowa, that would limit overall farm payments to $250,000 yearly per married couple. The current limit is $360,000. Southern lawmakers have traditionally opposed attempts to limit the payments because crops grown in that region, such as rice and cotton, are more expensive to grow.