Administration Plans Farm Policy Proposal

December 7, 1999

The Clinton Administration plans to propose changes in the 1996 farm law that would return to a policy of direct payments to farmers when prices are low but suspend the payments when prices recovered. The proposal appears to follow generally the outlines of a proposal by Rep. Charles Stenholm (D-TX), ranking Democrat on the House Agriculture Committee.

"We intend to be there (on Capitol Hill) with a plan that we believe makes the most sense," John Podesta, White House chief of staff, told a farm and agribusiness conference held in Washington by Farm Journal magazine.

Although he did not spell out details of a proposal, the general outline of payments when prices are low smacks of Stenholm's proposal that is expected to be an important part of agriculture committee hearings next year.

Committee Chairman Larry Combest (R-TX) has promised to hold hearings early in the year to see if there is justification to make significant changes to the 1996 farm law. Contributing to the urgency is the fact that Congress has provided emergency aid to farmers both in 1998 and 1999. There are concerns that crop and livestock prices will remain sufficiently low next year to force another round of aid.