05/05/08 Farm Bill Conference trims direct payments

Farm and Ranch May 5, 2008 The most sacred part of the farm program safety net to Northwest wheat growers is the direct payment and while they will continue in a new farm bill, the conference committee on a new farm bill agreed late last week to slightly reduce direct farm payments. Kansas Republican Congressman Jerry Moran offered an amendment to take some money from higher target prices and loan rates to restore the level of direct payments to those in the 2002 Farm Bill. Moran: "And what I am suggesting is let's eliminate the 313 million dollar reduction in direct payments and pay for it by reducing the increase. Target prices and loan rates will go up. They just won't go up as much as the principals suggest in their framework." House Agriculture Committee Chairman Collin Peterson spoke against Moran's amendment. Peterson: "It may be true that this is the safety net. It is a damn, poor, stupid safety net. The idea that a two percent cut for three years is gonna make any difference is ludicrous. If I had my way we wouldn't have direct payments. We'd have higher loan rates and higher target prices." Moran's amendment was defeated as was an amendment by Kansas Senator Pat Roberts to restore the full direct payment. The farm bill Conference Committee has nearly completed its work. The only unresolved issues in the Commodity Title are payment limits and beneficial interest. Congress last week extended the old farm bill until May 16th. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.