12/28/06 Looking for Restraint

While Democrats struggle next year to reduce the federal deficit - one Washington farm hand says agriculture will have a more sympathetic ear in a key position. Democrats will have to look for every dollar they can find to shrink the deficit - keep middle class tax cuts - and spend billions more on homeland security - education - and health care. That - while still facing two wars - and more fiscal conservatives in their ranks - plus a GOP opposed to tax hikes. American Farm Bureau Washington Director Mark Maslyn says there is one silver lining - incoming budget chair Kent Conrad of North Dakota. MASLYN: But it is a nuanced difference. You know Senator Conner has been very outspoken, right up through the lame duck session and tried to increase emergency assistance to farmers who were hit with weather related disasters. Conrad has also sided with Farm Bureau - that while the EU spends six to eight times what the US spends in subsidies - The US should not unilaterally disarm before WTO talks are completed. MASLYN: We're willing to give on domestic supports in exchange for more market access. I don't think the Congress wants to reduce that baseline and not get anything for it in a return for say greater market access worldwide. But Kent Conrad has also sharply criticized the GOP and the Bush Whitehouse for ballooning deficits. MASLYN: In many ways the Democrats are going to be faced with a higher bar because they have a perceived reputation as being big spenders and I think they're going to be working extra hard to demonstrate their fiscal discipline. And Maslyn agrees the very difficult fiscal environment will make it extra challenging to write the next farm bill. Especially based on the countercyclical nature of the `02 bill. That forces spending down when prices are up. MASLYN: Well you want to make sure you have a baseline that can function in the event of bad times when the economy does inevitably turn down. You also want to make sure you are not disarming the middle of negotiations in the multilateral round of trade talks. The latest Congressional Budget Office baseline is just over 16-billion for commodity programs. Falling to 11-billion by 2012. A new budget projection will be written in March. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.