Bush Administration Links Policy to Money

The Bush administration is willing to go to the mat to fund a new farm law if that law reflects policies the administration supports. Agriculture Secretary Ann Veneman told farm broadcasters Tuesday "the money will be there if the policy is good." Mitch Daniels, director of the White House Office of Management and Budget, also has been quoted saying, "If we get the right policy, money will follow, I can assure you of that."

The comments appear to lay the groundwork for a confrontation between the administration and Congress over not only what constitutes good policy but also what is meant by enough money. Veneman hastened to point out Tuesday that the $73 billion in the House farm bill – which the administration does not support -- would be spent over 10 years, while the $25 billion advocated by Sen. Richard Lugar (R-IN) in his farm legislation would be spent over five years. "Let's not mix apples and oranges," Veneman said.

She added she believes Lugar's bill is "consistent" with the principles laid out last month in the administration's farm policies. The issues are being "discussed for consideration if not for agreement," she said.

The Senate Agriculture Committee has come under pressure from some farm organizations wanting to lock in a spending framework based on current fiscal projections rather than wait until 2002 when money could be less forthcoming if the war on terrorism escalates.

However, Veneman said she thought Senate committee Chairman Tom Harkin (D-IA) at least was willing "to look at what the administration is saying" on the subject of funding and policy. Senators have agreed "to take the time to address critical issues for the future."

Meanwhile, several commodity groups wrote Senate Majority Leader Tom Daschle (D-SD) in support of a delay in Senate farm bill action. The groups, citing Administration assurances of sufficient funding, supported waiting until early 2002 to complete a new bill. Signers included the groups representing producers of corn, soybeans, beef, pork, chicken, turkeys, canola and fruits and vegetables.

The Senate panel has yet to mark up its version of a farm bill, and with the uncertainty over anthrax scares pervading Capitol Hill, there also was uncertainty whether Congress would remain in session long enough for the committee to complete a bill and get it to the floor.

In a letter dated earlier this week, Veneman and Daniels said the administration "remains firmly committed to completing farm bill reauthorization before next September. Our strong preference is to allow the time required to ensure a thoughtful, thorough approach to a new policy that better serves our farmers and ranchers, helps expand foreign markets, broadens support to more medium and small producers, revitalizes rural America, improves the environment, and addresses important infrastructure and nutrition needs."

"We believe that working cooperatively with congressional leaders and farm, trade, conservation and other groups, we can develop a broad consensus on good public policy that meets these objectives," Veneman and Daniels said. ‘The administration is committed to adequate funding for a new, five-year farm bill that provides an effective safety net for a broader cross-section of producers and is pro-trade. Consensus policy should drive the funding level. Recent public statements regarding the Administration's support for a five-year proposal authorizing $25 billion in new farm spending do not constitute a ceiling on new farm spending where good policy is involved. Simply stated, the better the farm policy, the more potential funding could be available."