Groups eyeing final Farm Bill draft

Reps ponder possible presidential veto

COLUMBIA BASIN - Several farmer-related agencies are keeping an eye on the process to finalize the 2007 Farm Bill.

"The (U.S. House of Representatives) passed their version back in late July (to) early August, and then the Senate just passed their version," Grant County Farm Bureau President Aaron Golladay explained.

"The two are kind of similar, but there's enough difference they're hoping by the third week in January it will go to conference committee, and they will hammer out the details," he said. "Whatever they come up with in their report, the House and the Senate each have to approve of and then, to top that all off, the (Bush) Administration has to sign off, and currently they are threatening veto."

The U.S. House of Representatives has extended the 2002 Farm Bill through March 15 while a decision is made on the new bill's final draft.

Jess Peterson, director of government relations for the U.S. Cattlemen's Association, said his group stands ready and waiting for conferees to be named to make the decisions about a blended version of the bill.

Peterson and Golladay said it remains to be seen what the White House will do with regard to the bill.

Concerns over the White House veto are primarily over budgeting and funding issues, Peterson explained, so conferees will have to find different ways to become more compliant.

"I think it would be very hard for the White House to strike all the livestock competition provisions," Peterson said.

One of the big issues in the bill for cattle producers was country of origin labeling, or COOL, Peterson said. Both the Senate and House versions include labeling language.

Peterson noted chicken producers have similar labeling in the Senate version.

"As far as chicken having it, I think it's better to have both products covered, as long as everyone's acting in good intentions here," he said. "At times, the chicken guys complained and then there were opportunities, if you loaded it up, you'd kill the bill because of too much on there. So as long as it's a good-natured attempt, which we think it is, consumers have the right to know."

Peterson believes the chicken industry saw the opportunity for a market increase with country of origin labeling and decided to follow suit.

"We're pleased that in any shape or form, COOL is moving forward in 2008 and it was not weakened," he said. "That was the biggest thing, that we're not having a Canadian steer listed as a U.S. product."

Also, livestock titles are the first time for "meaningful reform" since The Packers and Stockyards Act of 1921, Peterson said, with small amendments proving significant as an office of special counsel is created in the Senate version of the bill.

Under the bill, the office would have more enforcement capabilities than the existing agency, Grain Inspection Packers and Stockyards Administration, and be required to deliver presentations before the Senate and House twice a year.

Peterson also anticipates a strong showdown between the Senate and the House over a ban on packer ownership.

"The problem with the ban on packer ownership is you don't have captive supple reform," he said. "There's an ability for the packers right now to say, 'We don't own any cattle, we're not entering into those contracts,' but they're doing all the formula pricing and the contract pricing in which they have not established a cash price, and (it) is killing the live cattle cash market."

Because farming has done well this year, with good commodity prices, the bill isn't as important as it has been in the last four to five years, Golladay said.

"I can say honestly today, we don't need it that badly," he said. "Two years ago, it was a big help. But as we all know, what comes also goes and things shall turn again."

The question Golladay gets asked most often by bureau members is what the bill says.

"Well, I've got two versions out there and if I read correctly, this committee can throw out both versions and write their own total version, so I don't really know what I have coming in," he said.

Golladay also stresses that two-thirds of the Farm Bill is low-income food subsidies.

"Only a third of this actually ends up going to a farmer," he said. "The public as a whole needs to understand, the majority of this bill, even though it's titled Farm Bill, doesn't go to farmers. Farmers get a third of it, and then most of that goes to conservation programs. And I do believe the conservation programs are going to increase their potential part of it. When they look at that big dollar sign, don't think that's all going to farmers, by any stretch of the imagination."

For the first time, the 2007 bill is covering vegetables and row crops.

"Not to the extent I think the farm bureau and a lot of other organizations were hoping for, but it's a start," Golladay said.

The only crop not covered under the bill, he said, is hay.

For Grant County issues, Golladay said the Environmental Quality Incentives Program would stay in effect and probably have more funding than it has in the past. Coverage of fruits, vegetables and nuts will benefit the horticulture and potato industries, and he also expects the dairy industry to see some big benefits, continuing its Milk Income Loss Contract program with more funding.

Peterson said he is not optimistic the entire livestock bill will survive, but he expects to see key components like the office of special counsel.

He expects budget issues will be worked out as well.

"Of course, this is the President who couldn't find the veto pen in his first six years of administration and now it's like the only pen he uses," he said with a laugh. "It will be interesting to see what happens, but I think with what's been going on here, that's a pretty tough thing, to veto the entire Farm Bill."

Golladay pointed to the Energy Bill, which will continue to push commodity prices upward because of the bioenergy portion. The majority of money will go toward various forms of ethanol, but there is still funding for corn-based ethanol, he said.

"So it still looks good long-term," he said.