President Bush veto threat still stands

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Thursday Congressional farm bill principals touted a bipartisan, reform-minded bill that came "more than halfway" to meet President Bush's call for reform. No more than an hour after the leaders highlighted their changes, including lower payment limits, Agriculture Secretary Ed Schafer said the proposed bill does not go far enough.

I'm beginning to think of the ongoing farm bill negotiations similar to raising a child. The parent, in this case President Bush and the White House administration, are dealing with quite the rebellious child (Congress). All winter and spring long we keep hearing the White House scold Congress for not following the rules, and it's been no secret the rules the White House expects Congress to play by. Extension, after extension, Congress keeps trying to push the boundaries.

First it was how much money to play with, then it was a matter of how to use the money it was finally granted.

In a February 29 letter, President Bush's top aides emerged from meetings with both the House and Senate giving parameters of a successful farm bill. "The Administration is willing to consider spending of up to $10 billion above baseline, if the agreement contains significant reforms over and above the House proposal dated Feb. 12," the letter stated.

Here are some of the President's request and what the current bill does to meet those requests.

President on payment limits: The current adjusted gross income (AGI) limitation must be lowered and include a hard cap at no more than $500,000. The Administration originally proposed an AGI cap of $200,000.

Congress on payment limits: The bill eliminates the 3 entity rule which producers use to evade payment limits, and attributes payments directly to people. It brings the adjusted gross income caps down to $500,000 for non-farm income. If total income (farm and non-farm) exceeds $750,000 participants will no longer receive direct payments.

President on revenue assurance: The current price-based countercyclical program should be replaced with a revenue-based program that better targets farm support, includes a revenue guarantee cap and does not duplicate crop insurance assistance.

Congress on revenue assurance: In 2009, farmers will have a choice to participate in crop revenue protection. If participating, the farmer must give up 20% of their direct payments and 30% of their loan benefits. When farm revenues fall based on the state wide average, farmers will be able to receive protection. 

Other items that President Bush outlined in that Feb. 29 letter include not increasing commodity support programs, reforming the marketing loan program to eliminate provisions that allow producers to lock-in subsidy levels only to hold and later sell the crop at higher market prices, and eliminating planting restrictions of fruits and vegetables.

The official farm bill is not available, so some of the details remain unknown. Congress is expected to vote on the bill as early as May 14. Because of the veto threat, Congress will need to have two-thirds majority of the vote to overturn a veto.

Senate Agriculture Committee and joint conference chairman Tom Harkin said he hopes the bill will get an "overwhelming vote" in both the House and Senate. "Like any compromise bill resulting from hard bargaining among regional and other interests, this farm bill is far from perfect. But no piece of legislation is perfect. It includes significant reforms, as well as these major advances. It deserves the President's signature," Harkin said.

Click here for a summary of what is included in the bill.