Milling & Baking News - February 26, 2008 - 27

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Washington

House and administration seek common
ground on farm bill; Senate balks
10 years as opposed to five as in the
House-passed bill. With regard to
commodity programs, target prices of
program crops would be held at 2007
levels as would marketing loan rates.
The framework adopts the optional
revenue-based counter-cyclical payment format initially proposed by the
administration. The framework continues direct payments in all years except 2016, when they will not be made
to accommodate baseline requirements. Direct
'We are disappointed that the
payments would resume
in 2017. Sugar loan rates
Senate has not joined the House
would be held at 2007
in proposing a package that seeks
levels.
fiscal discipline and real reform
The framework adopts
the administration's prowhile providing a true safety net.'
posal that loan deficiency
- Secretary of Agriculture Edward Schafer and
payments and marketing
Deputy Secretary Charles Conner
loan gain rates be established on the day the
the administration as a step forward producer loses beneficial interest in
but was cold shouldered by Senate con- his crop, i.e. the day he sells it.
Farm program payment limits
ferees who on Feb. 15 offered their own
proposal that kept intact provisions of would be tightened based on adjusted
gross income. No payments would be
the farm bill passed by the Senate.
The differences weren't resolved be- made to individuals whose adjusted
fore Congress adjourned for the Presi- gross income is greater than $900,000.
A "soft cap" on payments would be
dents' Day recess.
The House framework proposed by put in place where unless two-thirds
Mr. Peterson and Mr. Goodlatte would of an individual's adjusted gross inlimit farm bill funding requirements to come is from farm-related income,
$6 billion over the budget baseline, a level there would be no payments if an
administration officials indicated they'd individual's adjusted gross income
be willing to accept, assuming budget exceeds $500,000 in 2009, $450,000 in
offsets could be found to conform with 2010, $400,000 in 2011, $350,000 in 2012
Congress' pay-go rules. The spending or $300,000 in 2013 and later years.
Enrollment in the Conservation Rereductions proposed in the framework
removed the necessity of employing a serve Program is capped in the frametax provision to offset increased farm bill work at 32 million acres beginning
Oct. 1, 2009, compared with 39.2 milspending in the original House bill.
"The president has clearly stated lion acres as the current cap.
The framework maintains House
that he will veto a farm bill that contains tax provisions," Mr. Peterson and farm bill provisions to spend a comMr. Goodlatte said. "It is unrealistic to bined $9 billion in outlays over fiscal
think otherwise. A presidential veto years 2008-17 for nutrition programs
leaves us without a farm bill, which is and the McGovern-Dole international
school feeding program.
not good for anyone."
Proposed spending on energy proMr. Peterson and Mr. Goodlatte said
their framework was a starting point grams is reduced in the framework to
for conference committee consideration $1.1 billion, as in the Senate farm bill.
Secretary of Agriculture Edward Schaand the most important thing was to
get agreement with Senate conferees on fer and Deputy Secretary Charles Conner in a joint statement said of the proan acceptable spending level.
"Once that is done, the conference posed Peterson-Goodlatte framework,
committee can begin to make the deci- "The administration appreciates the
sions about what will be included in the great work of Chairman Peterson and
final version of the farm bill," they said. ranking member Goodlatte in bringing
The Peterson-Goodlatte frame- us this far. The funding limits outlined
work would extend farm programs by the House represent the real reform
WASHINGTON - Representatives
Collin Peterson of Minnesota, chairman of the House Committee on Agriculture, and Bob Goodlatte of Virginia,
ranking minority member on the committee, on Feb. 14 proposed to Senate
farm bill conferees a framework for an
agreement on the farm bill that would
reduce funding requirements to levels
acceptable to the administration. The
proposed framework was greeted by

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Milling & Baking News

February 26, 2008 / 27

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Milling & Baking News - February 26, 2008

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