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Farm Bill Deal Would Cut Food Stamps By 1 Percent

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WASHINGTON (WWJ/AP) - Leaders from the U.S. House and Senate Agriculture committees have reached a bipartisan agreement on a farm bill scales back a House plan to make major cuts to food stamps.

The measure keeps food stamp benefits for most Americans, and is expected to cut the benefits by about $800 million a year, or around 1 percent.

Michigan Senator Debbie Stabenow, who chairs the Senate Committee on Agriculture, says the bill is good for farmers, and good for Michigan.

“Today’s bipartisan agreement brings us closer than ever to enacting a five-year Farm Bill that saves taxpayers billions, eliminates unnecessary subsidies, and helps farmers and business owners create jobs,” Stabenow said.

“The one out of four people in Michigan who work because of agriculture — the food industry — can, with the passage of this, have the certainty of knowing that we have the right policies in place to support their efforts and make sure that we continue to have the safest most affordable food supply,” she said.

Stabenow pointed out that the legislation is vastly different from a measure, that passed the House with strong conservative support in September, that featured 10 times the cuts.

“Despite some extremely harmful things originally passed in the House that would have eliminated help for people who’ve lost their jobs and need some kind of temporary food assistance, all of those areas were rejected and instead we focused, as the Senate did, on fraud and misuse.”

The bill also includes disaster assistance for Michigan’s cherry growers hit by bad weather.

“This bill proves that by working across party lines we can save taxpayer money while at the same time strengthening efforts helping to create jobs. Agriculture has been a bright spot in our economy and is helping to drive our country’s economic recovery. It’s time for Congress to finish this Farm Bill to provide certainty for the farmers and business owners growing Michigan’s second-largest industry,” Stabenow said.

The House is scheduled to consider the legislation Wednesday.

Passage of the bill, which would spend almost $100 billion a year and save around $2.3 billion annually, isn’t certain. But farm-state lawmakers have been working for more than two years to strike just the right balance to get the massive bill passed as congressional compromise has been rare.

Hoping to put the bill past them and build on a budget deal passed earlier this month, House Speaker John Boehner, R-Ohio, and House Majority Leader Eric Cantor, R-Va., endorsed the bill. Both said they would like to see more reform but are encouraging colleagues to vote for it anyway.

The House Agriculture Committee chairman, Rep. Frank Lucas, R-Okla., who has been working on the bill since 2011, called the bill “a miracle.” He was cautious with his optimism Tuesday after several years of setbacks.

“Can we create in the House a majority that is a coalition of the middle?” Lucas asked. “My gut feeling is, my reading of my colleagues, is yes.”

Stabenow said she’s confident the votes were there in the Senate. That chamber is expected to take up the bill shortly after the House.

Lucas and Stabenow have touted the bill’s overall savings and the elimination of a $4.5 billion-a-year farm subsidy called direct payments, which are now paid to farmers whether they farm or not. The bill would continue to heavily subsidize major crops — corn, soybeans, wheat, rice and cotton — while shifting many of those subsidies toward more politically defensible insurance programs. That means farmers would have to incur losses before they received a payout.

Still unclear, though, was how Republicans would get the votes they needed to pass the final bill on the House floor. The full House rejected an earlier version of the farm bill in June after conservative Republicans said cuts to food stamps weren’t big enough — and that bill had more than two times the cuts than those in the compromise bill announced Monday.

Some of those conservatives were certain to oppose the scaled-back cuts to food stamps, along with many of the farm subsidies the bill offers.

The final food stamp savings are generated by making it more difficult for states to give recipients a minimal amount of heating assistance in order to trigger higher food stamp benefits. The cuts were brought down to $800 million a year to come closer to the Senate version of the bill, which had $400 million in annual food stamp cuts.

Still, many liberal Democrats were also expected to vote against the bill, saying the food stamp cuts were too great.

Rep. Jim McGovern, D-Mass., a longtime proponent of food stamps, said he would vote against the bill and would encourage his colleagues to do the same.

“They are trying to ram this thing through before anyone has a chance to read it,” he said after the bill was released late Monday and scheduled for an early Wednesday vote.

A coalition of powerful meat and poultry groups, generally strong supporters of the legislation, also said Monday they would work against the bill after the heads of the agriculture panels did not include language to delay a labeling program that requires retailers to list the country of origin of meat. Meatpackers say it is too costly for the industry and have fought to have the program repealed in the farm bill.

Despite that opposition, Boehner and Cantor are hoping to corral enough votes to get the bill done. Cantor blamed the Senate for not accepting the House’s attempted changes to the food stamp program but said he would support the bill.

Boehner said he had hoped reforms in the bill would go further, but the legislation was “worthy of the House’s support.”

Lucas helped win Boehner’s support by jettisoning a portion of a dairy program overhaul that the speaker firmly opposed. Negotiators have spent the past few months figuring out how to work the dairy program so Boehner and other key lawmakers would support it.

The new program would do away with current price supports and allow farmers to purchase a new kind of insurance that pays out when the gap between the price they receive for milk and their feed costs narrows. But it would not include a so-called stabilization program that would have dictated production cuts when oversupply drives down prices. Boehner called that “Soviet-style” and made it clear it was a deal-breaker for him.

“If I should expire in the next three days I want a glass of milk on my tombstone because it’s what’s killed me,” Lucas said Monday night of negotiations over the dairy program.

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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