News & Observer | newsobserver.com | Farm bill holds benefits for N.C.

Published: May 14, 2008 12:30 AM
Modified: May 14, 2008 04:43 AM

Farm bill holds benefits for N.C.

Proposal includes nutrition, biofuels

 

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AT A GLANCE

Domestic nutrition programs make up the largest portion of the estimated $300 billion farm bill. Crop subsidies make up roughly 14 percent and foreign food aid less than 1 percent.

A breakdown of the bill:

* Food stamps and other domestic nutrition programs such as emergency food assistance: just over 66 percent, about $200 billion.

* Subsidies for rice, cotton, corn, soybeans, wheat and other crops: 14 percent, about $43 billion.

* Conservation programs to set aside or protect environmentally sensitive farmland: 9 percent, about $27 billion.

* Crop insurance to help farmers protect against losses: 8 percent, about $23 billion.

* Foreign food aid would make up less than 1 percent of the bill, costing less than $200 million. The bulk of international food assistance is in annual appropriations bills.

* Millions of dollars for research into new cellulosic-based biofuels, an area N.C. State University already is investing in.

* Would reduce the tax credit for corn-based ethanol fuel and create a new tax credit to develop cellulosic fuels.

STAFF AND WIRE REPORTS

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WASHINGTON - The nearly $300 billion, five-year farm bill scheduled to be voted on in Congress today reaches into the Triangle's roadside stands and school lunchrooms, into university laboratories, food banks and the grocery sacks of the region's poorest families.

There is money to research how to transform just about any growing thing, including algae and grass stalks, into bio-based fuels. There's a new federal institute to raise the national profile of agriculture research toward the level of cancer research.

There's money to market specialty crops, to boost very small businesses, to protect farmland and to extend water and sewer to rural areas. More than $10 billion in new money would go to nutrition programs, much of it to buy fresh fruits and vegetables for schoolchildren and low-income families.

President Bush has threatened to veto the bill, though, saying it doesn't go far enough to cut the "irresponsible" subsidy payments given to producers of corn, cotton, soybeans, wheat and other row crops -- even during a strong farm economy.

Bush wanted the bill to ban all subsidy payments to farmers with incomes exceeding $200,000. Instead, the bill bans one form of subsidy to farmers with agricultural incomes exceeding $750,000. For a married couple, the outside income limit will be $1.5 million.

Congress' approach, Bush said, "jeopardizes America's support for necessary farm programs."

The Club for Growth in Washington, an organization that promotes economic growth, said the bill hides spending through "gimmicks," eliminates payment limits on some programs and gives tax breaks for special interests such as racehorse owners.

"The farm bill is a slap in the face to American taxpayers," said Pat Toomey, the group's president.

The bill also includes some focused spending, including help for salmon fishermen in the Northwest, potato growers in Idaho and water quality projects near Sacramento, Calif.

U.S. Rep. Bob Etheridge, a Lillington Democrat who helped write the bill, said farmers need the subsidy safety net.

"I think we've worked on a compromise on many of issues he wanted to deal with," said Etheridge, who leads the commodities panel on the Agriculture Committee. "At the end of the day, you have to take care of that farmer that's out there on the tractor, making it happen."

Support in N.C.

There is bipartisan support in North Carolina, though some Republicans have expressed skepticism about parts of the bill. Sen. Richard Burr of Winston-Salem said he is still reviewing the bill, while Sen. Elizabeth Dole of Salisbury supports it.

And though the bill is almost certain to pass the U.S. House of Representatives and then the Senate, backers are scrambling to secure a veto-proof margin.

In North Carolina, for example, Farm Bureau lobbyist Jake Parker was still working the phones Tuesday to make sure the bill becomes law.

"We had to give a little bit, and the folks in the White House, you'd hope they'd give a little, too," Parker said. "It's a good bill. It's very balanced, we think."

For nearly two years, farmers across the state have been lobbying Washington for a new farm bill to replace the one passed in 2002.

It is one of the largest pieces of legislation that Congress deals with, covering a huge swath of the economy. In the Tar Heel state, one in four people is employed in a job related to the agriculture industry. Nationally, the number is one in five.

At N.C. State University, researchers like the new National Institute for Food and Agriculture. It would funnel money to scientists through competitive grants, almost akin to the National Institutes of Health, with a director appointed by the president.


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bbarrett@mcclatchydc.com or (202) 383-0012
McClatchy Newspapers correspondent Michael Doyle contributed to this report.
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