Compromise Crop Prices Bill Advances

A compromise farm bill that breaks the Depression-era link between crop prices and government payments cleared a panel of House and Senate negotiators Thursday after they agreed to overhaul dairy programs.

The agreement paves the way for final passage next week of the seven-year bill, intended to shift agriculture to producing for a rapidly growing overseas market. The measure ends price-based subsidies for major crops in favor of fixed but declining payments to growers of corn, other feed grains, cotton, rice and wheat.

“With reluctance, I will recommend to President Clinton that he sign the bill,” Agriculture Secretary Dan Glickman said in a statement. Although critical of its core provision, Glickman said he had to worry about farmers.

Glickman said he knew farmers were pressing for action because planting season is moving ever closer in the grain-rich Midwest.

“The hour is late and further delay only hurts the people this department is here to serve,” he said.

The bill did grant administration requests for rural development and nutrition programs and includes administration language on trade and research. But it fell short of giving some of the traditional farmer protections sought by the administration.

The major crops provision would guarantee growers $36 billion in “market transition payments” over seven years. A special commission would recommend the future farm program.

Government controls over what farmers could grow in order to get payments would mostly end. The government could no longer require that farmers idle acres in order to get payments.