Billions More for Farmers in Budget Bill

March 17, 2000

The House Budget Committee has reported its version of the fiscal 2001 budget resolution, and it includes $6 billion for farm relief, the third consecutive year such aid has been earmarked for farmers. The Senate Budget Committee is likely to follow suit when it drafts its resolution, expected next week.

It's expected that another farm aid bill will be needed this year -- either to shore up farm income lost from drought this summer or to shore up income from low commodity prices. The juxtaposition of those two scenarios is somewhat contradictory. With a drought, prices will increase, possibly significantly, leaving farmers in drought areas more at the mercy of the weather than the markets.

Since the $6 billion is part of the budget resolution, it will be up to the House and Senate Agriculture Committees to decide how the money should be spent, assuming the Senate passes a bill similar to the House committee's version.

This doesn't mean Congress won't approve emergency disaster aid. If a disaster were declared, money used would be off budget and could be in addition to the $6 billion or the $6 billion could be used as disaster aid.

Since the resolution involves fiscal 2001, the money would not be available until at least next fall or winter.