3/13/02

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1. CBO Drops Farm Bill Budget Bomb
2. Friends of Rural America
3. Conference Chairman Awash in Agribusiness Contributions
4. Another Farm Bill Emergency Supplemental Coming?

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Last week the Congressional Budget Office (CBO) threw a grenade under the farm bill negotiations table by announcing it had "underestimated" the cost of the Senate Farm Bill by $6.1 billion over ten years. The CBO, who is responsible for estimating the costs of proposed legislation, said the mistake occurred because it calculated the cost of extending current "Freedom to Farm" commodity payments on 85 percent of farmers' acreage rather than 100% as laid out in the Senate's Farm Bill. With important conservation programs at the centerpiece of the Senate bill, the

CBO's mistake casts an uncertain shadow over the future of these programs as the legislation proceeds through conference committee. It will also fuel arguments made by the White House and House Representatives that the Senate bill is too expensive. 

Meanwhile, there is now talk that if Congress does not pass a farm bill that there may be another round of emergency supplemental payments as paid out last year. See story #4 below.

As the Farm Bill deliberations continue key Senators have been extremely supportive in improving conservation farm programs.

Similarly, many of these friends of Rural America have supported improvements and increases in funding for rural development and fought hard to ensure that open and competitive markets continue for independent livestock producers. Senators Harkin, Daschle, Conrad, and Leahy are now also serving on the Farm Bill conference committee. Their work to help ensure conservation gains is to be commended and encouraged. They have and continue to be good friends of a diverse alliance of rural advocates who want to see rural America and it's environment vitalized and strengthened. Many thanks to each of them for their continued efforts in the face of challenging odds. If you can spare a moment, please call their offices. Thank them for their hard work and let them know that they are supported in their stand to improve the Farm Bill.

3. CONFERENCE CHAIRMAN "AWASH" IN AGRIBUSINESS CONTRIBUTIONS

Last week, as Representative Larry Combest was named as chairman of the Farm Bill conference committee, news began circulating regarding his campaign contributors. It seems that an investigation of Federal Election Commission (FEC) documents shows that giant agribusiness corporations rank among his most generous campaign financiers. The State News Service released information last week based on FEC documents showing Combest is "awash in agribusiness campaign contributions." They report that "in the past 14 months, Combest, a Lubbock Republican, has raked in about $333,000 in campaign contributions." The report which lists the various contributors by name reads like a "who's who" of corporate agribusiness. Some of the contributors include: Archer-Daniels Midland (ADM), Dow Chemical, American Association of Crop Insurers, National Pork Producers Council, National Cattleman's Beef Association, Philip Morris, Tyson Foods and the National Chicken Council, to name a few. One of the largest contributors named was the Texas Farm Bureau in Waco.

See the full story at: http://216.43.125.72:83/index.cfm?mthd=msg&ID=46807

4. ANOTHER EMERGENCY SUPPLEMENTAL?

As the Farm Bill roller coaster hits another low with the announcement by the Congressional Budget Office that they "miscalculated" the cost of the Senate Farm Bill, there are rumors around Washington, D.C. that passage of final farm legislation may be held up for ransom in an election year. Some have speculated that the inability to finalize efforts will be viewed by rural constituents negatively. With poor economic conditions and the uncertainty surrounding future policy and funding, these speculations could prove true. On top of this there is now talk that if negotiations fall apart this year, that Congress will likely move to approve an emergency supplemental to help struggling producers. American Farm Bureau President Bob Stallman made this suggestion March 8 in a Farm Bureau radio interview saying, "Leaders in Congress have said that if we can't get a Farm Bill done that there more than likely would be a supplemental emergency package." Stallman also reported that, "There would be money in the budget for that."

See the story at: www.fb.org/news/newsline/nl02/nl0306.html