Veneman Commends Lugar on Farm Bill Approach

Agriculture Secretary Ann Veneman Wednesday commended Sen. Richard Lugar (R-IN) for a farm policy approach Lugar plans to take that would phase out crop support programs and pour twice as much money into conservation as now is allowed by law. Instead of crop supports, farmers would rely on conservation measures, crop insurance and vouchers.

Lugar's bill would allow any farmer or rancher with more than $20,000 of farm income, regardless of the agricultural products the farmer produced, to secure federally backed insurance and guarantee up to 80% of the average income for a farm or ranch over the previous five years. The practice of assisting only farmers who produce selected or "program" crops would end, "thereby allowing all of the nation's agricultural producers to have a chance to protect their business against losses from poor weather and depressed market prices," according to Lugar.

"During my quarter century of service on the Senate Agriculture Committee, I have heard colleagues from many states assert unfairness in policies that omitted certain crops or livestock from legislative consideration," Lugar said. "The recurring plea has been to ‘level the playing field for American agriculture.' I have listened. My bill holds no favorites among farmers, ranchers and commodities. The New York apple grower, the Iowa corn farmer, the Nebraska cattleman and the California broccoli grower are all at the table. Freedom to farm among all commodities will be greater than ever."

The bill would increase conservation spending by $2 billion per year, doubling the nation's investment in voluntary, incentive based conservation programs. These programs encourage property owners to retire working lands which in turn, promotes wildlife habitats and soil conservation. It also would expand USDA rural development, research, energy and credit programs and promote the expansion of agricultural exports.

A Senate Agriculture Committee meeting today (Thursday) was to have drafted a farm bill, but the committee was forced to delay action for a safety check of Senate buildings after anthrax was found in the office of Senate Majority Leader Tom Daschle (D-SD).

In a statement released late Wednesday, Veneman said Lugar had taken "a very important step toward the continued viability of our farmers and ranchers" with his legislative ideas. "The bill has many positive attributes consistent with our (Bush administration) principles," she added. "It would provide new risk management tools more broadly to farmers as well as tackle critical issues in the areas of land and water conservation, rural development, infrastructure, nutrition and trade expansion."

Lugar also is willing to spend $25 billion in new budget authority over five years, about one-third of what would be spent under a bill approved by the House of Representatives