Lugar Tries to Hold the Line

July 26, 2001

As Senate Agricultural Committee Democrats moved forward with their $7.4 billion farmer bailout bill, almost $2 billion more than the House passed and President Bush has said he'll accept, the panel's ranking Republican, Sen. Richard Lugar (R-IN) led the attempt to hold the package to the lower level. However, his amendment failed 9-12. The Senate version could reach the floor for action there yet this week.

The Senate bill includes almost $6 billion for grain, cotton and soybean growers as well as $542 million for conservation programs and assistance to several other commodities. Although President Bush has not promised a veto of an amount larger than $5.5 billion, the White House has indicated one could be coming if the final package exceeds the lesser amount.

"The Federal budget limits this bill to $5.5 billion for the fiscal year 2001, and gives the House and Senate Agriculture Committees the authority to determine how the money will be allocated," Lugar said. But the Democratic version would "break the budget by 36%." The extra money would come from next year's supplemental agricultural assistance.

Lugar's alternative earmarked 90% of the $5.5 billion for market loss assistance payments thaqt would follow the existing Agricultural Market Transition Act (AMTA) formula. In fiscal year 2000 there was bipartisan support for a supplemental farm assistance package about the same size as this year, that fit within the federal budget and was approved with broad support in the agriculture committees, Lugar noted. Similar packages were produced by the appropriations committees in fiscal years 1998 and 1999.