Saturday, April 26, 2008

New Farm Bill action heats up

Democratic poobahs in the House and Senate have sprung into action, meeting behind closed doors repeatedly in the last two days, to patch together a Farm Bill, before the old one expires in a week.

There is a real possibility of a presidential veto, as the new bill is a budget buster, with over $10 billion in new spending for food stamps and other welfare programs. The latest version also cuts subsidies for ethanol, a stand becoming increasingly popular as food prices rise. There is no change in crop subsides or price supports, with no move at all back toward free enterprise in agriculture. That alone is thought to be enough to draw a Bush veto.

A severe ego clash between Senators Max Baucus of the Finance Committee and Tom Harkin of the Ag Committee has delayed action, but seems to be resolved with more spending in the bill to placate both. Minnesota Rep. Clayton Peterson, chairman of the House Ag committee, was also at odds with the two Senate power brokers and that's where the differences remain, before a bill sees the light of day Monday.

It is still an even bet that the old farm bill will be extended until after the election, particularly if Bush vetoes this one. This remains the most likely scenario, and would probably have not been challenged but for two factors:

First, rapidly rising food prices and worldwide complaints about it, left lawmakers needing to look like they were doing something, which passing a farm bill gives the impression of.

Second, predictions of a drought in the corn belt and other places could stunt crop yields and leave parched farmers in need of federal assistance that only a new farm bill can deliver.

The new farm bill doesn't do much to address either problem, but as they say in politics, "perception is reality." As long as they pass something with "farm" in the title, solons can go on the campaign trail and claim they did something, no matter how irrelevent and impotent.

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