Peterson threatens pulling bill if Kind-Flake amendment adopted

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The House is scheduled to begin full debate on the House Agriculture Committee's completed farm bill this week. Tuesday the entire committee essentially held a pep rally for their accomplishment of putting together a bill that received a unanimous vote in committee, and hopes to gain approval on the floor. Rep. Ron Kind, D-Wisc., and Jeff Flake, R-Ariz., are still planning on introducing a toned-down version of their reform. House Agriculture Committee Chairman Collin Peterson told lobbyists Tuesday evening he would pull the bill if the Kind-Flake amendment is adopted and call for an extension of the 2002 Farm Bill.

Tuesday Kind and Flake announced their scaled down bill, many of which mirror several of USDA's proposal.

Key reforms of the bill:

• Replaces price guarantees with a revenue-based safety net developed by USDA experts that better protects family farmers from declines in crop prices and crop yields. Savings: $1 billion over five years.
• Denies subsidies to large commercial farmers with average annual adjusted gross income greater than $250,000 and limits annual subsidies to $250,000 per person.
• Reforms government-subsidized crop insurance program to fairly share the costs and risks with crop insurance agents and companies. Savings: $2 billion over five years.
• Gradually reduces direct payments. Limited resource farmers would be exempted from cuts, and modest incentives would encourage farmers to invest payments in rainy day accounts. Savings: At least $7 billion over five years.

According to an analysis conducted by a former USDA official on behalf of the Environmental Defense, the amendment would increase farm spending in 348 congressional districts when compared with an extension of the 2002 Farm Bill. The amendment increases nutrition spending by $5.4 billion over five years, increases conservation spending by $6 billion over five years, and makes other investments to help fruit and vegetable growers, minority farmers, and boost rural development.

Industry groups oppose bill

Almost 80 agricultural organizations wrote members of Congress asking that they support the House Agriculture Committee's product and oppose efforts to "weaken the farm safety net when the measure comes to the House floor this week."

The text of the letter follows:

"The Kind-Flake farm bill proposal -- mistakenly being marketed as "reform" when it is nothing more than "repeal" -- would dismantle the farm safety net and put U.S. farmers and ranchers in an unfair competition against heavily subsidized foreign producers. Virtually all of our farmers and ranchers -- including those raising fruit, peanuts, vegetables, dairy, soybeans, sugar, corn, cotton, wheat, rice, other grains, livestock, and many others -- would be financially harmed by even the most modest price drops if these proposals became law.

"Kind-Flake would also hurt crop insurance at a time when Congress is trying to bolster crop loss protection. Moreover, Kind-Flake undermines farmers' ability to promote and use conservation methods that protect our water, air, soil, and wildlife.

"Sadly, the Kind-Flake scheme ignores the unparalleled success of the 2002 Farm Bill, which has saved American taxpayers $25 billion and ensures that all Americans continue to enjoy the world's safest and most affordable food supply. This proposal also fails to recognize that U.S. agriculture is an economic driver, employing 20% of the nation's workforce and contributing $3.5 trillion to the nation's economy annually -- supportive policies should not be weakened.

"The Kind-Flake proposal -- in any form -- does not represent American farmers or the American citizens we serve every day, and we respectfully urge all Members of Congress to reject it."