Make us your home page

Farmers fret over debt negotiations

WASHINGTON — Farm groups are rushing to save government subsidies they've long received.

President Barack Obama and lawmakers have targeted $30 billion or more in agriculture spending cuts as they try to negotiate a deficit-reduction deal.

Farmers say they know they will have to take a hit. But they fear too many cuts will send booming crop prices into a dive, raising the potential for another 1980s-era farm crisis.

Budget negotiators are looking at three pots of agriculture money:

• Direct payments, which are subsidies that farmers get regardless of what they grow.

• Crop insurance, which helps farmers in the event of losses.

• Conservation money, which pays farmers to protect environmentally sensitive land.

As happens every five years when Congress renews a farm bill, lobbyists and lawmakers from farming states are fighting to save their piece of the pie. Now it's just happening a little earlier, and largely out of public view, as Washington tries to find a way to raise the nation's debt limit and cut spending before the government defaults on some payments Aug. 2.

A new farm bill isn't due until next year, but could be pushed up if lawmakers are forced to find savings. A budget deal could dictate the terms of the cuts or leave it up to the congressional agriculture committees.

The chairman of the House Agriculture Committee, Rep. Frank Lucas, R-Okla., has said he hopes negotiators will tell lawmakers exactly how much they want cut from the farm budget and let the agriculture committees hash out the details.

Negotiators are looking at reductions of $30 billion to $35 billion over 10 years, which amounts to a more than a 15 percent cut from the three programs.

Rep. Collin Peterson of Minnesota, the top Democrat on the committee, said such large cuts would make it almost impossible for Congress to write a new farm bill and figure out how to protect producers from a downturn. "It's a mess, is what it is," he said.

Farmers fret over debt negotiations 07/16/11 [Last modified: Saturday, July 16, 2011 10:50pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.

Join the discussion: Click to view comments, add yours