ongress has approved a $1.7 trillion budget resolution. For agriculture, the resolution includes $6 billion over the next five years for risk management or income assistance. The money is in addition to that included for traditional USDA programs. The resolution does not have to be signed into law by the president; instead it serves as a blueprint for Congress to use in structuring the budget. It now is up to the House and Senate Agriculture committees to decide how the $6 billion authorization will be used.
There are a few caveats: if Congress wants to spend any of the money in fiscal year 2000, it will have to be offset to avoid any budget loss. Also, no more than $2 billion may be spent in any one fiscal year.
The Senate and House Agriculture Committees will begin work soon on risk management, or crop insurance reform. The Senate Agriculture Committee holds a hearing Wednesday (April 21) to review a recent USDA report on federal crop insurance.
Then on April 28, the Senate committee will host a roundtable discussion on crop insurance reform.
House Ag Committee Chairman Larry Combest (R-TX) has promised major reforms to the program as well.
But some members of Congress are calling for income assistance for farmers,
too. Farmers are faced with another year of low crop and livestock
prices, and there have been calls for Congress and the administration to
support and approve income assistance on top of the multi-billion dollar
disaster aid package approved last year for farmers.