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Kentucky awaits new farm bill passage with mixed reactions |
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By TIM THORNBERRY
Kentucky Correspondent WASHINGTON, D.C. — While the nation finally has a new farm bill after months of negotiations, committee meetings and floor debate, President Bush isn’t happy with it and promises a veto once it hits his desk.
There seems to be enough votes, however, in both the House and the Senate to override a veto.
The bill comes at the end of a long, bitter battle over legislation that lays the groundwork for many ag-related programs including subsidies, nutrition, conservation and international trade programs. In Kentucky, agriculture and government leaders are happy it’s over and say even though it isn’t perfect, it is a good bill to lead farmers through the next few years.
Republican Sen. Mitch McConnell said, “Kentucky farmers will benefit greatly from the many important programs that are promoted and preserved in this bill. I was pleased to support it on behalf of Kentucky’s farmers and their families who do so much for our commonwealth and the nation.
“I would be remiss if I didn’t mention my disappointment that this bill will unfairly punish Kentucky’s small farmers by making all farmers with less than 10 base acres ineligible for farm payments. That disproportionately hurts Kentucky, because we have such a high proportion of small farms.
“I’m concerned this punitive portion of the bill will have broader consequences than the authors realize and will punish some of those farmers who might be most in need of assistance. However, the good appears to outweigh the troubling aspects of this conference report, and a lot of Kentuckians will benefit from the many important programs that are promoted and preserved in this bill.
“I will support it and, by doing so, support the hard-working farmers in Kentucky who are feeding our nation and the world while providing a living for so many citizens in America,” McConnell said.
A portion of the bill authored by McConnell will give tax breaks to the Kentucky horse industry. The measure would ensure that all racehorses are depreciated over three years for tax purposes, regardless of when the horses start training.
“The horse industry is a vital part of Kentucky’s economy and cultural heritage,” he said. “Horses are Kentucky’s largest agricultural product. The industry contributes $3.5 billion to Kentucky’s economy and directly employs more than 50,000 Kentuckians.
“While many Americans identify the horse industry as one of Kentucky’s signature industries, its economic impact extends well beyond the borders of the commonwealth.”
Some of the major sticking points with the bill were costly earmarks pushing it more than $20 billion over its original proposed cost, according to Agriculture Secretary Ed Schafer, and provisions still allowing some subsidy payments to farmers that make more than $1 million dollars a year, leaving many to feel the small farmer was left out of the mix.
Both Schafer and Bush voiced their disappointment in the bill, with the president saying it fell far short of the proposal his administration put forward.
“For over a year, Congress has had the opportunity to work with the administration to craft a farm bill that delivers reform to outdated, costly farm programs while strengthening the safety net and adhering to fiscal discipline in a time of nationwide economic challenge,” Schafer said.
“Instead, Congress chose a different path, and today they passed a bloated, earmark-laden bill that spends nearly $20 billion over its original cost and continues to balance subsidy payments to the wealthy on the backs of the middle-class taxpayer.”
In a letter sent from Kentucky Farm Bureau President Marshall Coyle to the state’s Congressional lawmakers before the vote, he wrote, “This bill provides a basic, no-frills safety net for America’s farmers while increasing support for the hungry and the environment.”
The letter also noted that “the legislation, which covers crop years 2008 through 2012, earmarks around 67 percent of the $300 billion five-year spending total to nutrition programs. Only about 12 percent is devoted to the commodity title, while roughly 11 percent targets conservation programs. The remainder of the funding pays for a variety of research, rural development, forestry and related programs that are vital to colleges, community agencies and rural communities.”
Coyle said he thinks the veto will come but feels certain there are enough votes to override it.
“When you look at how the farm bill passed, I think absolutely the votes are there to override a veto. The message came clear from both the Senate and the House in the resounding vote in favor of the farm bill, that they support American agriculture and American farmers,” he said.
“We’ve been about two years into this process and I hope by the end of the week this thing will be over and we can get on to other things. It seemed like every time we felt positive about it, somebody would throw a monkey wrench into it – but I think all in all, agriculture came out as good as we possibly could considering the length of time and all the discussion that happened over the farm bill.”
While farm receipts are up – Kentucky has seen a level of record receipts in the last few years – the cost of farming has increased sharply. For example, in a state where despite decreasing production tobacco is still a big moneymaker for many farmers, the elimination of the price support system has seen the price per pound offered by tobacco companies fall below what producers made 20 years ago, despite steadily increasing production costs.
If a number of Republican lawmakers do buck the president’s wishes, a new farm bill should become law by this time next week.
This farm news was published in the May 21, 2008 issue of the Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
| 5/21/2008 |
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