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Copyright 2002 The New York Times Company  
The New York Times

February 14, 2002, Thursday, Late Edition - Final

SECTION: Section A; Page 26; Column 1; National Desk

LENGTH: 1083 words

HEADLINE: Senate Passes $44.9 Billion Farm Bill Limiting Subsidies

BYLINE:  By ELIZABETH BECKER

DATELINE: WASHINGTON, Feb. 13

BODY:
The Senate passed a farm bill today that increases basic subsidy programs, doubles spending for conservation programs and puts strict limits on how much money a single farmer can receive.

By putting $22 billion into expanded conservation programs over a decade, the farm bill could become the most sweeping environmental legislation since the Clean Air Act of 1990.

The five-year, $44.9 billion bill also doubles the administration's request for food stamps, ensuring that the Agriculture Department's nutrition program is the second-largest federal program combating poverty.

The measure passed 58 to 40 with nine Republicans joining the Democrat majority, and it stands in stark contrast to the House farm bill approved last fall. That bill gives less money to conservation and nutrition programs, places no limits on individual subsidy payments and gives an additional $9 billion to commodity subsidies over a decade.

Lawmakers will try to reconcile the two versions in conference, which is expected to last several weeks.

Senator Tom Daschle of South Dakota, the majority leader, had pushed to pass a bill before midterm elections, and today he praised the Senate's version of the farm policy.

"This bill provides certainty for producers, an increased commitment to conservation, expanded nutrition, provisions making farmers and ranchers more competitive, and needed assistance for rural development," Mr. Daschle said.

For his part, Senator Trent Lott, the minority leader, portrayed the Senate farm bill as "the most partisan" in his memory. But many of the votes seemed determined as much by geography as by politics.

Western senators of both parties worried about restrictions on water and packing houses. Southern senators complained about restrictions on subsidy payments.

Senator Blanche Lincoln, Democrat of Arkansas, voted against her party to protest payment limits that fell most heavily on rice and cotton farmers.

The two Republican senators from Maine broke ranks with their party leaders to support the bill's conservation measures and a $2 billion dairy program that replaces the Northeast Dairy Compact.

Finally, the senators from Iowa seemed to be acting in tandem even though they sit on opposite sides of the aisle. Senator Charles E. Grassley, a Republican, wrote the amendment to limit subsidy payments and another to prohibit meat packing companies from owning their own livestock.

That provision is intended to protect small hog farmers, many of whom live in Iowa. Mr. Grassley's fellow Republicans said his measure would hurt the big meatpacking companies and cause an upheaval in the pork and beef industries.

Senator Tom Harkin, Democrat of Iowa and chairman of the Agriculture Committee, paid a rare tribute to his colleague today, thanking him for his "courage in representing Iowa farmers." Mr. Grassley voted with the Democrats.

Congress agreed last year to set aside $171 billion for a new 10-year farm bill to replace the Freedom to Farm law that expires in October. That policy was intended to wean farmers from subsidies but triggered emergency payments that now cost $20 billion each year, a greater amount than proposed in both new farm bills.

The House bill uses all $171 billion and covers the entire decade. The Senate's version, however, is a five-year plan that spends $6 billion more than half of the available funds.

Democratic senators said the problems in rural American were severe enough to warrant their strategy, but Senate Republicans objected. President Bush said in a statement tonight that he strongly disagreed with the Senate bill.

"This bill front loads spending into the first five years, leaving vital programs under-funded in the years that follow," the president said. "I am committed to sound farm policy that supports America's farmers and ranchers and am disappointed that the Senate-passed bill doesn't get the job done."

At the center of both bills is the Depression-era program that pays farmers to grow corn, wheat, soybeans, cotton and rice. The Senate version would limit each farmer's annual subsidy to $275,000 -- cutting in half the amount of money the biggest farmers receive in the House version.

The size of farm subsidies came to the national forefront last winter when a nonprofit group opened a Web site listing every federal subsidy payment received by every farmer in the last five years.

Senator Richard G. Lugar, Republican of Indiana and ranking member of the Agriculture Committee, refused to vote for the Senate farm bill, saying it did not go far enough in limiting subsidies.

"The egregious inequity of the farm program is that sixty percent of farmers receive no subsidies whatsoever," Mr. Lugar said.

The new conservation programs were written to remedy that inequity, and payments can be made to farmers who raise fruits and vegetables or ranchers who raise cattle or pigs. In current law and the House bill, the vast majority of conservation programs are available only to farmers of commodity crops like corn, rice and wheat.

The new farm bill also underwrites extensive conservation programs to clean up city drinking water, protect forests from urban sprawl and help protect wildlife and their habitat.

Every major conservation group set its sights on the farm bill this year, from the Sierra Club to the Environmental Defense Organization.

"In its scope and in the significance of its programs, there hasn't been a environmental measure of this importance since the Clean Water Act," said Ken Cook, president of the Environmental Working Group.

But several conservative organizations criticized spending billions of dollars for what they called corporate welfare.

"Taxpayers continue to underwrite corporate agriculture," said Joe Theissen, executive director of Taxpayers for Common Sense. "With passage of this bill, incentives to overproduce still plague farm policy and will haunt family farmers for years to come. Huge farms aided by these subsidies will continue to produce more products than the economy can absorb."

The Senate bill also contains new provisions covering animals. It prohibits interstate shipments of dogs or roosters for fighting; requires puppies raised on puppy farms to be let out of their cages to play with dogs and people; and it bans the interstate trade in bear parts, a provision intended to prevent poachers from killing bears to sell their gall bladders for use in Asian medicine.
 

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GRAPHIC: Chart: "ADDING IT UP -- Two Versions of One Farm Bill"
The Senate passed its farm bill yesterday. Below, some differences between it and the 10-year bill the House passed in October, which will have to be worked out in conference committee.
 
MONEY ALLOCATED FOR: THE ENVIRONMENT above $20 billion for basic programs
SENATE BILL*: $22 billion
HOUSE BILL: $16 billion
 
MONEY ALLOCATED FOR: COMMODITIES above $70 billion for basic programs
SENATE BILL*: $41 billion; limit of $275,000 per farmer
HOUSE BILL: $40 billion
 
MONEY ALLOCATED FOR: DAIRIES to replace the Northeast Compact
SENATE BILL*: $2 billion
HOUSE BILL: none
 
MONEY ALLOCATED FOR: FOOD STAMPS AND NUTRITION above a $200 billion entitlement not included in the bill
SENATE BILL*: $7.8 billion
HOUSE BILL: $8.3 billion
 
MONEY ALLOCATED FOR: RENEWABLE ENERGY PROGRAMS like ethanol and wind farms
SENATE BILL*: $500 million
HOUSE BILL: see next category
 
MONEY ALLOCATED FOR: RURAL DEVELOPMENT
SENATE BILL*: $1.7 billion
HOUSE BILL: $2.15 billion; with money for renewable energy
 
*The Senate bill covers only five years, but the totals are based on 10-year projections.      

LOAD-DATE: February 14, 2002




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