Panel Rejects Combest, Goes with White House

June 21, 2001

The House Agriculture Committee has approved $5.5 billion for farmer assistance this year, $4.6 billion in direct payments and $900,000 for crops other than the so-called "major" program crops. On a 24-23 vote, the committee amended Chairman Larry Combest's (R-TX) attempt to give another $1 billion in assistance. Combest voted against sending the final bill to the House floor.

Rep. Charles Stenholm (D-TX), the ranking Democrat on the committee, favored the lesser amount, saying the $1 billion in savings could help pay for the new farm bill that Combest wants out of the committee this summer.

"I am encouraged that we could take the first step in providing much needed economic assistance to our ailing agricultural sector, and it is important to note that this assistance is being provided in a manner that is consistent with what the White House has indicated President Bush would sign, said Stenholm.

The $4.6 billion in aid would go to grain and cotton farmers in payments about equal to 85% of the assistance they got last year. Soybean and other oilseed producers would receive $420 million.

Other earmarked funds include $169 million to support fruits and vegetables, $84.7 million for cottonseed, $54 million for peanut growers and $16.9 million for wool and mohair.

Combest had argued that $5.5 billion was not enough to meet farmers' financial needs this year, and adding another $1 billion was an acceptable limit. But in a letter to the committee last week, White House budget director Mitch Daniels said he would recommend President Bush not sign a bill that provided more than $5.5 billion in assistance.

USDA has revised its projected net farm income for 2001 to $42.4 billion, $1.1 billion more than the January forecast, because of higher livestock prices.

"As we move through the legislative process, I am going to continue to explore every opportunity to provide additional assistance to our agricultural producers without resorting to deficit spending," Stenholm said.