Massive farm bill opposed on all sides

Massive farm bill opposed on all sides

	Published : Thu, 26 Jul 2007 08:47 By : Agencies Print this Story

WASHINGTON (AP) - A wide-ranging, five-year farm bill is facing opposition from both the right and the left -- a challenge for Democratic leaders who are hoping to win House passage of the legislation before the August recess.

The House was expected to begin consideration of the bill Thursday that would extend agriculture and nutrition programs.

The White House has threatened to veto the legislation, saying it doesn't do enough to cut farm subsidies. At the same time, Republicans who previously supported the bill have said they will oppose it because of a last-minute proposal to tax certain foreign-owned companies with U.S. subsidiaries. Those taxes would pay for $4 billion in food stamps and other nutrition programs.

'It is a tax increase and we feel very betrayed by that,' said Virginia Rep. Bob Goodlatte, the top Republican on the House Agriculture Committee.

The farm legislation has also divided Democrats, some of whom are upset that it either leaves in place or increases subsidies for major crops and say it does too little for environmental and nutrition programs. Those rifts, combined with rural Republican defections, could doom the measure.

House Speaker Nancy Pelosi, D-Calif., is supporting the bill, saying it is a 'critical first step for reform.' The legislation would ban subsidies to farmers whose income averages more than $1 million a year and stop farmers from collecting payments for multiple farm businesses.

Agriculture Secretary Mike Johanns, citing the farm subsidies, said the legislation misses opportunity for reform. Johanns said the millionaires proposal would affect only about 7,000 farmers. In contrast, the administration's suggested limit for farmers whose income exceeds an average $200,000 would hit 38,000 farmers, Johanns said.

The current farm bill, which expires Sept. 30, limits farmers to $360,000 in subsidies per year, but that ceiling is filled with loopholes that allow many farms to exceed it.

Peterson denounced the veto threat, saying the administration had 'failed rural America and all Americans' by opposing a measure that has broad backing from agriculture, conservation, nutrition and renewable energy advocates.

Republicans have sharply criticized the proposal by Rep. Lloyd Doggett, D-Texas, to tax overseas businesses.

Doggett said the plan would not affect 'legitimate multinational corporations that are not employing a haven to dodge American taxes.'

Rep. Ron Kind, D-Wis., is offering an amendment that would scale back subsidies in favor of conservation, aid for specialty crops like fruits and vegetables, and nutrition and rural development programs. That effort has divided Democrats and caused concern among farm-state lawmakers who argue it would devastate agricultural programs and cost the party its newly won majority.

The Senate is due to begin its consideration of the legislation in September.

The bill is H.R. 2419.