The Times Leader, Wilkes-Barre, Pa., Tom Venesky Column: Subsidies Cap Draws Opposition

By Tom Venesky, The Times Leader, Wilkes-Barre, Pa.

Jul. 29–The 2007 Farm Bill that was passed by the House late Friday afternoon by 40 votes was praised by two local legislators, but met with mixed reaction by two area farmers.

The bill passed by a vote of 231-191 and was supported by U.S. Reps. Paul Kanjorski, D-Nanticoke, and Chris Carney, D-Dimock Township. Both legislators praised the bill because it will benefit dairy farmers, fruit and vegetable growers, and conservation programs, and places a new cap on subsidies to direct more money to family farms.

The 2007 Farm Bill that was passed by the House late Friday afternoon by 40 votes was praised by two local legislators, but met with mixed reaction by two area farmers.

The bill passed by a vote of 231-191 and was supported by U.S. Reps. Paul Kanjorski, D-Nanticoke, and Chris Carney, D-Dimock Township. Both legislators praised the bill because it will benefit dairy farmers, fruit and vegetable growers, and conservation programs, and places a new cap on subsidies to direct more money to family farms.

The current farm bill expires on Sept. 30.

Kanjorski said the bill has the support of most farm organizations and farmers, and he expected the Senate to pass “a good portion” of the bill when it acts on it in September.

“All the farmers understand this bill was the best they could get,” he said. “It has a lot of the same features as the previous Farm Bill, but it’s more effective.”

Carney said the bill makes “historic investments” in conservation, nutrition and renewable energy and maintains a strong safety net for farmers in the region. He said the bill reflects the reality of a tough budget year and was optimistic it will be passed by the Senate.

Carney said the renewal of the Milk Income Loss Contract will help local dairy farmers by providing support payments when milk prices drop.

“There was some talk about removing it, but MILC absolutely must be in place,” he said.

The new bill extends the MILC program to 2012, and Carney said he will work with the Senate to make sure the cost a farmer incurs to produce milk is figured into the price he is paid.

The 2007 Farm Bill also directs $1.6 billion to fruit and vegetable growers and affords them the opportunity to sign up for conservation programs that weren’t available to that segment under the previous bill.

Columbia County farmer Brian Campbell, who raises 900 acres of sweet corn and pumpkins along with 300 acres of grain, was happy to see more money directed to vegetable growers.

“Vegetables are a great opportunity to get young people into farming, so any money directed to that area will help,” he said.

Kanjorski also said the new bill puts a cap on those farms eligible for the $42 billion in subsidies and programs. Previously, farms with a gross income of $2.5 million weren’t eligible for subsidies, and Kanjorski said the limit has been lowered to $1 million.

The move cuts funding for large, wealthy corporate farms, he said, and directs the money to smaller family farms.

“Farm subsidies average out production, so you get cheaper prices for the consumer,” Kanjorski said.

The news didn’t sit well with Campbell, who said the cap is too low because a farmer’s net income is considerably lower than the gross.

“That’s a problem. We’re grossing $2,000 to $3,000 an acre, so it doesn’t take too many acres to reach that cap,” he said.

“Our net is a lot lower.”

Drums farmer Len Burger, who raises 50 acres of produce and 175 acres of grain, agreed with Campbell and said the lower cap will affect more farm operations that aren’t necessarily large.

“As the costs go up, like fuel and fertilizer, all of a sudden you’re a big farmer but you’re still farming the same amount of land,” Burger said. “They’ve got to let you make a profit in a good year so you have money to get through a bad year then we wouldn’t need subsidies.”

The bill was supported by the Pennsylvania Farm Bureau because it kept the general framework of the 2002 bill in place.

Bureau spokesman Mark O’Neill said the new bill spreads money out more efficiently to a number of areas.

Carney said the new bill doubles the amount of money for farmland preservation programs and allots $2 billion in incentives for renewable energy development.

“It encourages farmers to be creative with crops, such as switchgrass and corn, used for energy production,” he said.

The Chesapeake Bay Foundation also expressed support for the bill because it calls for $212 million in conservation funding to protect Chesapeake Bay waterways.

About the bill

The 2007 Farm Bill calls for $286 billion in agriculture spending over the next five years:

–$2.2 billion for conservation programs such as EQIP (Environmental Quality Incentives Program)

–$4 billion for nutrition programs

–$1.6 billion for fruit and vegetable growers

–$2 billion for renewable energy development

–$350,000 million for fruit and vegetable snack programs in schools

“All the farmers understand this bill was the best they could get. It has a lot of the same features as the previous Farm Bill, but it’s more effective.”

U.S. Rep. Paul Kanjorski D-Nanticoke

Tom Venesky, a Times Leader staff writer, may be reached at 829-7230.

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