OTHER NEWS - Oct. 8, 1994

Higher Farm Subsidies Seen: As crop prices drop in anticipation of a record-breaking harvest this fall, the U.S. Agriculture Department is bracing to dole out large amounts to farmers to soften the sting of lower prices. Government economists said payments to farmers could jump by $2 billion from earlier estimates, as prices drift below levels mandated by the farm bill and more producers take out government loans to offset low prices. Total farm program outlays this fiscal year could hit $12 billion, a senior Agriculture Department economist said, up from an earlier projection of $10 billion. Direct payments to farmers will probably account for almost $8 billion of the total. Payments to corn farmers alone could jump about $550 million, the economist estimated.