Bush seeks less money for farm programs

WASHINGTON (AP) _ Trying to tighten the federal budget, the Bush administration on Wednesday proposed to reduce farm spending by $18 billion over the next five years. <br/><br/>Agriculture Secretary Mike

Wednesday, January 31st 2007, 12:30 pm

By: News On 6

WASHINGTON (AP) _ Trying to tighten the federal budget, the Bush administration on Wednesday proposed to reduce farm spending by $18 billion over the next five years.

Agriculture Secretary Mike Johanns is not seeking major changes in the nation's farm subsidy program, which major farm groups and lawmakers in Congress want to retain.

``I believe so strongly in what farmers said,'' Johanns said, describing forums he held in dozens of states. ``They like the structure of this farm bill, but they have a big vision for the future.''

However, there is one big change: The administration is seeking to eliminate farm payments for wealthy producers, limiting subsidy payments to those making less than $200,000 in adjusted gross income annually. The current income cap is $2.5 million.

That would rule out payments for about 80,000 producers who currently are eligible, officials said. Those producers collect about 4.5 percent of overall farm payments. The limit on payments would save an estimated $1.5 billion over 10 years.

``I don't know if there is anywhere in the country you can go where $200,000 adjusted gross net income is not a lot of income,'' Deputy Secretary Chuck Connor said. ``You're the richest guy in the county.''

It's difficult to know just who would be cut off, said Ken Cook, president of Environmental Working Group, which tracks subsidies. Cook said many high-profile recipients, such as media mogul and CNN founder Ted Turner, probably were cut off in 2002, when Congress imposed the $2.5 million income cap.

``You end up eliminating absentee owners who have a lot of income they're trying to shelter in agriculture,'' Cook said. ``It could be a small-town lawyer or a business executive in Memphis who's put some money into a cotton plantation.''

The administration also seeks to increase spending in some areas, such as conservation, which would grow from roughly $4 billion to $5 billion each year.

``It's certainly not as ambitious as it should be or could be, but it's a step in the right direction,'' said Scott Faber, spokesman for Environmental Defense, a nonprofit conservation group.

But he added that groups are worried about a plan to open the Conservation Reserve Program, which pays farmers to idle cropland, to growing switchgrass and other crops as feedstocks for ethanol.

Lawmakers are anticipating having fewer dollars for farm programs when Congress writes a new farm bill this year. President Bush has promised to balance the budget within five years, and the Democratic-run Congress is insisting on budget cuts to pay for new spending.

The farm bill _ really a series of federal programs _ gives farmers payments and other help to supplement their incomes, support crop prices and manage supplies.

Johanns' plan would cost $87.3 billion over the next five years, not counting food stamps and other nutrition programs, compared with $105 billion spent on farm programs over the past five years.

Most subsidy payments go to growers of five major crops _ corn, soybeans, wheat, rice and cotton.

The administration proposes to:

_Reduce support from loan programs and boost direct payments, particularly for cotton growers, who depend more on the loan programs.

_Keep a target-price program that pays farmers when prices are low _ but link it to revenues instead of crop prices.

_Keep dairy and sugar programs that limit supplies to support prices.

_Eliminate a prohibition that keeps fruits and vegetables from being grown on land where subsidized crops are grown; double purchases of fruits and vegetables for school lunch and other nutrition programs.

The current farm bill written in 2002 expires at the end of this year.