Senate ag panel approves farm bill

By Larry Dreiling

The Senate Agriculture Committee has approved its version of a five-year farm bill that would cut spending while also creating new subsidies for farmers.

The legislation approved 15 to 5 by the panel May 14 includes concessions to Southern rice and peanut farmers, thanks to the new top Republican on the committee, Sen. Thad Cochran of Mississippi.

The bill eliminates $5 billion in direct payments important to Southern farmers but makes it easier for them to receive alternate subsidies if prices dip.

The Senate bill calls for a total of roughly $2.4 billion a year in cuts. Those cuts include more than $600 million in yearly savings from across-the-board cuts that took effect this year.

Much of the savings in the bill comes from eliminating the direct payments, which aren’t tied to production or crop prices. Part of that savings would go toward deficit reduction, but the rest of the money would create new programs and raise subsidies for some crops while business is booming in the agricultural sector. [Read More]

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