Farm-state lawmakers in the House have conceded they probably won’t be able to attach a long-term extension of U.S. farm policy to any deal to avert tax increases and budget cuts set to take effect in the new year, and will now go back to the drawing board.
Growers of corn, cotton and other crops may have to accept reduced subsidies in the next farm bill as budget-cutting becomes necessary to contain record deficits, House Agriculture Committee Chairman Collin Peterson said.
The U.S. House passed and sent the Senate a much-delayed bill to set agricultural policy for five years, as rural Republicans and urban Democrats overcame objections about farm subsidies and food-stamp cuts.
House Agriculture Committee Chairman Frank Lucas and Senate Agriculture Committee Chairman Debbie Stabenow are backing a short-term extension of a farm law that lapsed Sept. 30 as the Obama administration warns that without congressional action, retail milk prices could almost double.
Democrats on the House Agriculture Committee failed to restore cuts in federal food-stamp spending as the panel approved yesterday a $940 billion bill reauthorizing U.S. Department of Agriculture programs.