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Copyright 2001 The New York Times Company  
The New York Times

December 20, 2001, Thursday, Late Edition - Final

SECTION: Section A; Page 24; Column 6; National Desk 

LENGTH: 721 words

HEADLINE: Senate Vote Rejects a Bid To Increase Aid to Farms

BYLINE:  By ELIZABETH BECKER 

DATELINE: WASHINGTON, Dec. 19

BODY:
Senate Republicans effectively killed the $171 billion farm bill today, blocking the Democratic measure for this session.

The wide-ranging bill, which covers food stamps, rural development, and conservation programs as well as crop subsidies, would have added billions to the current subsidy system. Those federal payments act as a safety net for thousands of American farmers, providing over $10 billion in direct payments every year.

A similar measure passed the House in October over the objections of the Bush administration, which had warned it was too expensive and gave too much money to commodity subsidies and not enough to conservation efforts.

In response, the Democratic-sponsored measure in the Senate offered an additional $22 billion for conservation and environmental programs over the next decade.

But Democrats failed three times this week to win enough votes for their bill, underlining the deep divisions in Congress over how best to support American farmers who have been struggling with depressed crop prices and increasing competition in the global market.

After the vote today, the Senate majority leader, Tom Daschle, said he planned to bring up the measure again next month. But he warned that the deficits in next year's budget could mean there would be far less money for farm programs.

"The real losers today are not Democrats or Republicans," Mr. Daschle said, "the losers are hard-working family farmers and rural America."

But Republicans themselves disagree over how to recast farm policy that dates from the Depression era. Especially contentious is how to alter the system that rewards a fraction of American farmers, those with large grain and cotton operations, with most of subsidies.

Senator Richard G. Lugar, Republican of Indiana and ranking minority member of the Agriculture Committee, rejected the accusation that Republicans were blocking the bill and hurting farmers.

Instead, Mr. Lugar argued, there was ample time to replace the current law, which will not expire until next October, with a bill that he said should cast the safety net of subsidies far wider to help all farmers.

"This bill was crafted to benefit a fairly small number of farmers in America," Mr. Lugar said. "It is not in the best interest of a large majority of farmers."

During the debate, lawmakers from both parties argued for payment limitations, spurred by growing complaints from smaller farmers. Farmers can now learn which of their neighbors are receiving subsidy money, and how much, on a Web site opened last month.

Republican and Democratic senators also disputed whether the measure provided enough money for the food stamp program.

With unemployment rising and welfare benefits running out for many families over the coming year, food stamps will become critical, lawmakers said.

The Senate bill would increase financing for food stamps by $6.2 billion. The House measure would add about half that amount, or $3.6 billion, to a program that suffered deep cuts in the effort to overhaul welfare in the Clinton administration.

Senator Tom Harkin, Democrat of Iowa, who is chairman of the Agriculture Committee and sponsor of the bill, said these differences paled in comparison to problems in rural America that he said needed to be addressed urgently by the passage of a new farm bill.

"This is a really sad day for farmers and ranchers," Mr. Harkin said. "We've essentially said to them, Go take a hike -- we'll deal with you later."

But Democrats are as divided as Republicans over subsidies. Midwestern lawmakers like Senator Byron L. Dorgan of North Dakota were pushing for a ceiling on payments that would allow more farmers to receive smaller payments. But Southern Democrats opposed limitations because they would hurt large rice and cotton farmers who are among the biggest beneficiaries of the current system.

The administration has criticized both Senate and House measures, saying many of the price supports under consideration would encourage overproduction, which keeps prices low and pushes up land rents.

Those subsidies, in turn, could be in violation of international trade agreements and undercut American farm exports. Agriculture Secretary Ann M. Veneman has said the best hope for farmers is to increase their exports overseas.        

http://www.nytimes.com

LOAD-DATE: December 20, 2001




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