Lugar Unhappy Over Farm Bill Final Shape

April 29, 2002

Sen. Richard Lugar (R-IN), ranking Republican on the Senate Agriculture Committee sharply criticized House-Senate farm bill conferees for agreeing to a final bill that Lugar says will increase spending 70% over the next six years and allows most of the new spending to go to large farmers. "Even at a time when our country is involved in a far reaching war against terrorism and new federal budget analysis projects a potential deficit of almost $100 billion in the current fiscal year and deficits for years to come," the committee still took the action, he says.

"The formulas that will be used create the strong probability that as few as 10% of the growers will receive more than two-thirds of the new money. The bill will heighten incentives for farmers to over-produce as they seek to maximize the federal subsidies for which they are eligible. The result will be continuing downward pressure on prices and continuing calls for emergency farm rescue legislation," he said.

Lugar continued, "I have made these points in Senate debate, in public presentations, and in the conference committee itself. I am disappointed that my arguments did not persuade most lawmakers, as both Senate and House conferees were determined to spend the maximum amount of money provided by a congressional budget resolution passed over a year ago.

"Nor did the conference committee agree with my arguments against incentives for over-production or in favor of a much more comprehensive sharing of payments across all farms in this country."

"Reforming agriculture policy is not a subject that excites the American public, the vast majority of which will pay for the subsidies and receive very little benefit. The disclosures made by the Environmental Working Group of how most farm subsidies go to a few wealthy farmers added significantly to the public debate and create an important framework for future debates," he added.