Lines drawn over subsidy cap in farm bill

Many members of congress feel the farm subsidy program is broken. They feel too many people who don't really need the money are getting payments.

Just last week there was another embarrassment, when new information showed that even some billionaires are pocketing tens, even hundreds of thousands of dollars in subsidies.

One proposed change is to reduce the maximum per farm payment. Right now the cap is $360,000 a year. But even efforts for a modest reduction are running into problems.

In his weekly telephone news conference, House Ag Committee Chair Collin Peterson said he will not push for a new subsidy cap.

"Not unless I'm asked by the groups," says Peterson. Those groups are farm commodity organizations. It's unlikely they'll ask Peterson to reduce the subsidy cap since many are on record opposing major changes in the subsidy program.

What prompted Peterson's line in the sand comment was a strong message this week from House members representing mainly cotton and rice producers in the southern U.S. During a subcommittee hearing, they voted to maintain farm subsidies as they are.

Peterson says the vote carries a lot of weight.

"I still believe that without the southerners support you can't pass a bill," says Peterson. "And the southerners obviously were not ready to go where the subcommittee initially started off. So, I take that as a reaction to payment limits myself."

"Not unless I'm asked by the groups."

But Peterson admits he may run into problems when the legislation reaches the House floor. He says it will be difficult getting a bill past urban legislators unless it contains a reduced subsidy cap.

The issue will face an even bigger test when it comes time for a conference committee to settle differences between the House and Senate bills.

Senate Agriculture Committee Chair Tom Harkin of Iowa is one of the biggest boosters of making major changes in the subsidy system. In his weekly telephone news conference, Harkin criticized the actions of the House subcommittee.

"We can't let a narrow minority segment drive this whole bill," says Harkin. "We can't let a few large entities; they get a lot of money or people who get money that don't even farm, drive the farm bill. We just can't allow that to happen."

Both Harkin and Peterson want a new farm bill finished by the end of the federal fiscal year, September 30. That will be a challenge. Peterson hopes the House will finish its legislation before Labor Day. But Harkin is already saying it may be October before the Senate completes it's work on the bill.

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