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Farm bill deal: 'We pulled off a pretty amazing thing'
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WASHINGTON - After a year of bargaining, Minnesota Democrat Collin Peterson spearheaded a breakthrough on a federal farm bill Thursday that would set new payment limits on agriculture subsidies for the next five years.
But in a continuing dispute over the income limits on farm payments, the White House suggested that President Bush might veto the bill, setting up a possible override battle after Congress votes on the bill -- with passage expected -- as early as next week.
Under the deal brokered by House and Senate negotiators, federal subsidies would be limited to those earning a maximum of $500,000 in non-farm income. For full-time farmers, the income limit would be $750,000.
Bush originally called for a $200,000 overall income limit.
Nutrition programs, which make up more than two-thirds of the spending in the $300 billion bill, would be increased by more than $10 billion.
"We pulled off a pretty amazing thing here," said Peterson, in his second-year as chairman of the House Agriculture Committee. "We've been able to maintain a safety net for farmers and we've made some significant reforms."
Sen. Norm Coleman, a Republican on the Senate Agriculture Committee, said he would break with Bush over the threatened veto.
"It's a good bill. It's an important bill for Minnesota," said Coleman, adding that the subsidy levels in the bill represent a compromise.
"The bottom line is Ted Turner's not going to be getting farm payments," he said.
Minnesota Democrat Amy Klobuchar, who also sits on the Senate Agriculture Committee, said the compromise takes a "landmark step" toward payment reform.
The bill also has the backing of freshman Rep. Tim Walz, a Democrat who represents rural southern Minnesota.
Still, there could be a split in the Minnesota delegation. GOP Rep. Jim Ramstad opposes the bill. "Congress should not force hard-working taxpayers to subsidize millionaire farmers," he said, "especially when taxpayers are struggling to put food on their own tables."
Backers of the bill say price supports and other payments insure a reliable food supply.
IN OTHER ACTION: HOUSING RELIEF BILL
The House passed a homeowner rescue plan to provide cheaper, government-backed mortgages to a half-million debt-ridden borrowers and bolster the economy.
Defying veto threats from President Bush, the House approved the measure 266 to 154, with 39 Republicans -- including Minnesota's Jim Ramstad -- supporting it. The rest of Minnesota's delegation voted along party lines.
The plan is expected to cost $2.7 billion over five years.
Supporters hope the package -- which awaits action in the Senate -- will serve as the basis for a broad bipartisan housing compromise that could satisfy both parties' keen appetite for delivering election-year aid. But Bush's veto warnings are clouding its prospects.
The Associated Press contributed to this report. Conrad Wilson • 202-408-2723
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