President Clinton today signed the agriculture appropriations bill into law, including the $8.7 billion farmer relief portion, the largest farmer assistance packages ever that swells to $22 billion the amount of direct payments farmers will receive from the government. Included in the bill are provisions to supplement eligible farmers' Freedom to Farm payments, $5.5 billion, and another $1.2 billion in disaster aid.

USDA officials believe they can get the supplemental transition payments under the 1996 farm law out to farmers quickly, definitely in less than the two weeks originally thought. Disaster payments probably will lag into next year, because USDA will hold a sign-up for farmers who suffered crop damage or loss from natural disasters. However, the department likely will made an advance payment for disaster losses, then pro rate that advance against a final payment that probably won't be ready until late winter at best.

For a summary of the appropriations bill, click here.

Even before Clinton signed the spending bill this morning, Agriculture Department officials were debating how to interpret several provisions. Notably, one section of the bill appears to allow producers to receive loan deficiency payments in commodity certificates rather than cash. Certificates have normally been exempt from payment limitations. Internal USDA debates center on whether the certificate provision is mandatory or is left to Secretary Dan Glickman's discretion.