News Room

Harkin Still Looking For Funding; Markup Deadline In Doubt

Having already missed self-imposed deadlines, Senate Agriculture Chairman Harkin said today he still hoped to mark up the 2007 farm bill before the Columbus Day recess, but it could be delayed because he does not have the money he wants for his priorities or a majority of senators on his committee behind a bill. Harkin said he is not worried about the slowness in finishing the bill. "I've been through seven farm bills," he said. "This is nothing new." Harkin said he is still considering paying for rural development and energy programs by making a "very, very modest" cut in the direct payments program, which goes mostly to wheat, cotton and corn. If farmers accept a slight reduction when prices are high, Harkin said, they could get more rural development money for their communities, set the stage for cellulosic energy production and get more conservation payments. Harkin said he did not know if he had the votes to make that change, but he dismissed concerns that establishing a price trigger for reductions in direct payments could cause the World Trade Organization to reclassify direct payments as trade distorting.

Harkin acknowledged that he would have to include a permanent agriculture disaster aid program to pass his plan to include a countercyclical payment program when farmers' revenue declines. "Key members of the committee are intent on this, so we may have to seek a compromise," he said. Senate Finance Chairman Baucus has said he will use his panel's authority to find money for the permanent disaster program, rural development and energy bonds, and tax credits instead of cash payments for certain conservation programs. Harkin complained today that Baucus' plans do not help him fund his priorities within the Agriculture panel budget. Baucus, who has said he will hold a markup Oct. 3, has said his plan should free up money within the Agriculture Committee budget. Senate Finance ranking member Charles Grassley, R-Iowa, said today he would back Baucus' permanent disaster plan. Baucus said the Finance Committee would "control the program we set up" rather than give money to the Agriculture Committee. Acting Agriculture Secretary Conner said Monday he believes a permanent disaster program would undermine the crop insurance program.

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