News Room
Conrad Charts Less Costly Alternatives To Harkin Farm Bill
Senate Budget Chairman Conrad Wednesday presented Agriculture Chairman Harkin and other Democratic members of the Agriculture Committee with a chart of three farm bill options that would cost less than Harkin's current draft.
Like Harkin, Conrad proposed cutting direct payments to crop farmers to pay for other changes in the bill, but Conrad's cuts would be much smaller, according to a copy of the chart obtained by CongressDaily.
In an interview, Conrad acknowledged the chart's authenticity and that he had presented it to Harkin and the other senators, but said it should be considered a menu of options rather than a farm-bill proposal.
"This document is designed to help forge a consensus, to bring to all of our attention the gap between where we are and the money that we have," Conrad said.
Conrad's release of the chart appeared to confirm speculation he has been working on alternatives to Harkin's bill, but a Harkin aide said the chart was not an indication that there is a split between Harkin and Conrad or their staffs.
"This paper was provided and is a contribution to the discussions that have gone on [about] how you could put the bill together within the funding limitations," the Harkin aide said.
The aide confirmed the numbers Conrad used to describe Harkin's proposal are generally accurate. A Harkin spokeswoman also said Agriculture Committee Democrats are meeting almost daily to try to reach a consensus on a bill.
According to the chart, Harkin has proposed increasing spending on farm bill programs by $14.2 billion over five years, but would cut direct payments to crop farmers by $4.5 billion over those five years.
Conrad's first option would increase spending by $10.4 billion if there is no reduction in the direct payment program. A second option would increase spending by $11.4 billion while cutting direct payments by $1 billion over five years. A third Conrad option would increase spending by $11.9 billion, but cut direct payments by $1.5 billion.
Under current law, cotton, rice, corn, wheat and other program crop farmers would get a total of $5.2 billion per year in direct payments, or $26 billion over five years. In March, CBO said the baseline for current farm bill programs including food stamps would be $280 billion for the 2008-12 period.
Conrad said he had not shown the chart to Senate Agriculture ranking member Saxby Chambliss, R-Ga., but has discussed parts of his proposals with him.
According to a footnote on the chart, Harkin would make a 12.5 percent across-the-board reduction in direct payments plus a 2 percent reduction for each 1 percent by which crop prices exceed 110 percent of the target price.
Conrad said his trigger for reducing direct payments would be the point at which prices exceed the cost of production as determined by USDA, with every 1 percent in excess resulting in a 2 percent reduction in payments.
Conrad said his trigger for reducing direct payments would be a 2 percent reduction for each 1 percent that prices exceed the cost of production as determined by USDA. If farmers got low yields, they would also be able to keep their direct payments, Conrad said.
Conrad did not release details of his options, but said his commodity title would include rebalancing of loan rates, more money for specialty crops, a revenue-based countercyclical program based on national changes in farmers' revenue from specific commodities, a sugar program similar to the House-passed bill and a dairy program that would be substantially different from the House bill and Harkin's initial proposal.
Conrad's chart assumes the Agriculture Committee would have an additional $3 billion to spend because the Senate Finance Committee would take care of certain conservation and energy programs.
Conrad's chart does not mention Senate Finance Chairman Baucus' proposed permanent disaster aid program, but Conrad said he assumes Baucus will include $5 billion over five years for it in his committee's mark to accompany the farm bill.
Conrad's chart provides a $4.2 billion increase for nutrition, the same amount Harkin provided and slightly less than the House provided.
By Jerry Hagstrom
Congress Daily
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