Bush Warns Senate Against 'Political Gimmickry'

February 11, 2002

President Bush, speaking Friday to the cattle industry's annual convention and trade show in Denver, CO, vowed he's stick with his pledge to honor $73.5 billion in farm program spending over 10 years but warned Congress against using "political gimmickry" to spend the money. "We've got to have a good bill that not only enhances our nation's security by making sure we've got ample food, but that we, by having good farm policy, good agriculture policy, we can help create jobs all across America," he said.

Bush said, "I want farm policy that is generous in our appropriations and affordable. Now, we've agreed that our farm bill should cost $73.5 billion over the next decade. My administration will honor that agreement. But we've got to spend the money without -- I guess you could call it politically gimmickry." He then hinted the Senate version of the farm bill smacked of political gimmickry.

"You see, what we don't want to have happen is they take the bulk of that money and spend it early, so that in the out years, the farm economy suffers.What we want is to make sure that when the bill is passed, that the $73 billion is spent evenly, or relatively evenly over the decade. In other words, to put it bluntly, what we don't want to do is over-promise to farmers, and under-preform. What we don't want to do is use the taxpayer's money to try to cobble together a loose coalition to get votes early on which will ultimately hurt the agricultural sector of the United States of America.," said Bush. The Senate "front loads" the bill with more spending in the near years than in the out years.

The President continued, "A good farm bill must provide a safety net for farmers, without encouraging over production, and thereby depressing prices. By setting loan rates too high, we could easily worsen a problem that loan rates were supposed to correct. I favor farm policies that strengthen the farm economy over the long-run, policies that promote independence. But what I don't want to do is to provide incentives into the marketplace that will hurt farmers. And so we've got to have good loan policy. And I look forward to working with the members on the stage to provide that."

He also promised to keep agriculture at the center of U.S. trade policy as negotiations proceed on a new trade agreement under the World Trade Organization. "I know there's some skepticism," he said. "People are always saying, every President comes along and he talks about agriculture, and then when it comes time to negotiate international trade agreements, they seem to forget. Well, so far, our administration hasn't forgotten."

Bush also called for a farm bill that includes authorization for farmers to set aside money in good years in a type of IRA, then have the right to use that money when prices and incomes are low "I want to make sure the good farm bill establishes farm savings accounts to help farmers and ranchers manage risks that you run. I think the federal government can help mitigate (price) cycles by giving farmers and ranchers the opportunities to establish what we call farm savings accounts or ranch savings accounts. We'll give you a chance to insure against risk. It makes a lot of sense."

In comments to reporters, separate from the Denver event, Agriculture Secretary Ann Veneman said the administration has not taken a position on payment limit reductions included in the farm bill. "The current law has payment limits, the House bill has payment limits, and this (the Senate version adopted last week) is a different kind of payment limit. And the administration has only said that whatever the Congress passes, we want it to be something that we can implement."

She said "our folks" at USDA are studying the Seante provison. There are always difficulties in implementing these kinds of things, and we haven't analyzed all the details of the amendment that was passed, because it was being changed I think clear up to the time it was actually introduced."