By TIM THORNBERRY
Kentucky Correspondent

LOUISVILLE, Ky. — Nearly two years after public discussions of the 2007 farm bill began, the U.S. Congress still has yet to pass the legislation.
Add to that an extension of the current bill last week by President George W. Bush, who set a new deadline of April 18 for legislators to act, many in the farming industry are wondering if a bill will be passed at all.
The inaction and misconceptions of what the farm bill is all about, prompted Kentucky Farm Bureau (KFB) Federation President Marshall Coyle to speak out urging passage of a new bill to help rural economics in the country.
In a letter to newspaper and media editors across the state Coyle said, “While Congress and President Bush recently completed work on an economic stimulus package for America, farm interests have been pushing for another type of economic boost known as ‘the farm bill.’ Sometimes mischaracterized as a subsidy program for large-scale corporate farms, the nation’s farm policy actually goes a long way toward providing a sense of economic stability in rural communities. And it does so with a broad reach.”
In reality, the farm bill contains less than 30 percent of financial provisions that actually goes to production agriculture. Most of the money is used for nutritional programs such as food stamps and school-lunch programs.
Coyle said other funds go to projects such as a wide variety of research, conservation, renewable energy and trade programs but the small portion of funding connected to the commodity title section of the bill provides “income support to farm families when market prices are low.”
Coyle added that, while this portion is small, it has a significant effect on the farm economy. “With this ‘safety net’ eliminating some of the instability and uncertainty in farm income, farmers can obtain operating capital even during the bad times. The multiplier effect to the non-farm sector bolsters the economic base of rural America,” he said. “The slight injection of this safety net into the farm economy spurs investment in new technologies on the farm and development in rural communities. And most importantly, it allows farmers to continue to provide Americans with an affordable and high-quality food supply.
“Indeed, the farm bill is policy that touches all of us by sustaining the world’s best food system. Without it, Americans almost certainly would have to spend more of their incomes on food, leaving them with fewer resources for other necessities.”
Kentucky senior U.S. Sen. Mitch McConnell touted a variety of aspects of the bill saying he hopes for passage after Congress’ Easter recess.
“Our farmers will benefit from this bill’s new investment in nutrition, renewable energy, and rural development programs, as well as additional incentives for conservation of natural resources,” said McConnell.
“Currently, members of the House and the Senate Agriculture Committee have been meeting to develop a compromise measure on the farm bill. I hope that when Congress returns from the Easter Recess, we can take up this important piece of legislation and work towards passing a bill that will benefit our farmers.”
McConnell added, “I have been a member of the Senate Agriculture Committee for over 20 years, and in my experience farm bills are always difficult to finish. We need to make sure it is not a bill that raises taxes, but a bill that puts our farmers and their needs first.”
That possibility of a tax increase coupled with a lack of, in some opinions, reforms built into the legislation, has Bush threatening a veto of the bill without these provisions.
KFB Director of National Affairs and Political Education Joe Cain said the whole process has been complicated at best after what appeared to be a smooth start. “I think everyone wants a farm bill, and it’s important to get a strong safety net out there, but this has been one of the most up and down rides I’ve been on,” he said. “The House version was going so well and the Senate came up with a similar bill that passed by the largest margin for a farm bill in history.”
That momentum disappeared; however, when the call for decreased subsidies and need for increased funding perceived by many as tax increases, came during committee hearings.
“Many are calling for a free market system for all farmers, but there are so many variables when it comes to farming,” said Cain.
Those opposed to subsidies often refer to the price many grain growers are getting for their crops now, but prices will not always stay at high levels, Cain explained.
Kentucky tobacco farmers know too well about that free market system, and the up and downs it can create with the loss of their quota and price-support system.
Josh Long, University of Kentucky Ag and Natural Resources extension agent for Fayette County said the lack of a bill will ultimately hit close to home.
“I think passage of the bill is a concern for our local farmers because it affects the whole industry one way or another. It’s similar to the spokes on a bicycle wheel. Each spoke affects how the whole wheel functions. It’s hard to say how it will go but we have a lot of anxious people looking on.”
Coyle added, “To those who have bought into the assertion that farm subsidies are ‘welfare’ for well-to-do farmers, please consider this: according to USDA projections, direct government payments to farmers in 2007 accounted for less than four percent of gross farm income.
“In other words, it is the marketplace that provides $97 of every $100 a farmer earns. Nevertheless, the fiscal parameters adopted by Congress for the next farm bill calls for a $22.5 billion reduction in commodity program spending over the five years of the program.
“Meanwhile, food stamp programs would see a $29.9 billion increase. Adopting a new farm bill is the best thing our leaders could do to stimulate economic activity in rural America. This should be a high priority.”